VW'S TOP EXECS TOLD TO HAND BACK THEIR PORSCHE COMPANY CARS
- Volkswagen eliminated free Porsche company cars for 200 executives in a cost-cutting measure.
- The change was due to those vehicles being returned in rough condition.
- Some affected executives are taking legal action, considering it a salary cut and part of their compensation package.
There are all sorts of benefits to working at a company beyond a paycheck. You might have a breakroom stocked with tasty treats or get extra time off in the summer. You might also get a company car, and when you work for Volkswagen, it could be quite a nice company car since the VW Group includes Porsche. The company recently changed its policy, however, and eliminated Porsche from the list, which has made its executives rather unhappy.
Porsche
Porsche is a German sports car manufacturer and part of the broader Volkswagen Group since August 2012. Founded in 1931 by Ferdinand Porsche, the brand is most famous for the 911 line of sports cars, which first launched in September 1963. But it was the Porsche 356 that came first, and subsequently, Porsche has expanded its model lineup to include a variety of sports cars, supercars, SUVs, sedans, and even EVs. Porsche has a rich history in motorsport, with 19 outright Le Mans victories to its name, among various other titles.
It's all a part of cost-cutting measures being applied across the company. These measures eliminated free Porsche company cars from around 200 executives. According to German newspaper Bild, part of the problem was how those company cars were being returned to the company. Rather than being in gently used condition, these vehicles were sometimes trashed, which made loaning them out a much more expensive proposition. We'd imagine getting something like the new 2025 Porsche Cayenne GTS would be pretty tempting to drive to its limits.
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Say Goodbye To Your Free Porsche
This new policy affects over 200 high-level managers who are members of the Top Management Circle (TMK). These lucky employees received two vehicles of their choosing, with most of the VW Group brands made available as options. So, whether they wanted a Porsche 911 or a mild-mannered Volkswagen Golf, it was free. That's a pretty nice perk, but it's one the company chose to change in order to save money.
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It's not everyone, however, who will be crying tears over the loss of their fancy company cars. Porsche managers and corporate board members will still have the benefit of getting a Porsche as their company car. Essentially, the program still exists, just with its top offering reserved for a much smaller and more exclusive group of Porsche employees.
Executives Planning Legal Action
The new plan could save the company millions, but taking away those cars is not going over well with those affected, and they're taking legal action. It might seem like just a nice perk, but it could be considered part of an employee's overall compensation package.
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Viewed that way, those employees all just got a salary cut by vriture of not having access to more premium cars. There are already lawsuits regarding the ban in the Braunschweig labor court. In that same court, a few dozen VW managers are also protesting changes to promised salary payments. In the meantime, employees who lost their free Porsches will have to go out and buy one just like the rest of us.
Source: Bild