Volkswagen must cut costs faster to change, chairman says

(Krisztian Bocsi/Bloomberg)Key Takeaways: Porsche urged Volkswagen on Aug. 7 to rapidly cut costs and excess capacity, backing management proposals that include eliminating tens of thousands of jobs. The pressure reflects falling competitiveness, underused plants and a reported 30% cost gap, while Volkswagen and Porsche face weaker China sales. Volkswagen AG’s majority owner urged Europe’s biggest carmaker to move quickly on cutting costs and excess capacity to tackle a slide in competitiveness. Volkswagen “is at a historic crossroads,” Porsche SE Management Board Chairman Hans Dieter Pötsch, who also heads VW’s supervisory board, said in a statement. Volkswagen CEO Oliver Blume is trying to make the automaker faster and leaner after years of software delays, bloated costs and declining profitability.