STUTTGART (dpa-AFX) - Due to the slump in its Chinese business and poor business figures, sports car and SUV manufacturer Porsche is facing significant criticism from its shareholders. "In addition to the many home-grown problems, such as the far too late response to the crisis in China, there are now uncertainties caused by US tariffs," said Ingo Speich of the fund company Deka at the virtual annual general meeting of the Stuttgart-based company. Porsche currently has no answer to its weakness.

In Speich's view, it was a bitter year for shareholders. The VW subsidiary was dragged down by the downward spiral in the automotive industry, and its shares lost enormous value. Even the strong brand and luxury positioning did not help. "Their ideal image of Ferrari is becoming increasingly distant," said Speich. Only the black horses in the logos still connect the two brands. "But while the Cavallino from Maranello gallops away, the horse from Zuffenhausen is limping."

Blume: We are experiencing a "violent storm"

A successful year looks different, according to Markus Kienle of the Schutzgemeinschaft der Kapitalanleger (SdK), an association that protects investors. The figures for the first quarter revealed serious weaknesses in the company's structure and did not bode well for 2025.

Porsche CEO Oliver Blume said at the annual general meeting: "We already had massive headwinds last year. Now we are experiencing a violent storm." But he added that the company is fighting back and must do its homework. Porsche is suffering from a mix of problems: The ramp-up of electric mobility has slowed significantly. The market in China has virtually collapsed. Trade conflicts, unstable supply chains, and expenditure on flexible drive systems are among the factors driving up costs. In addition, US tariffs are now weighing on business.

Renewed criticism of dual role

Blume is also head of the parent company Volkswagen. Several shareholder representatives once again voiced strong criticism of this and called on the top manager to decide which of the two crisis-stricken DAX-listed companies he would lead. Porsche and VW are the only listed companies in Germany that can afford a "part-time CEO," said Hendrik Schmidt of fund provider DWS.

In Blume's view, the advantages of the dual role outweigh the disadvantages. However, it is not intended to be permanent. The final decision must be made by the supervisory board.

Porsche profits in free fall

The sports car manufacturer has had a turbulent few months: in addition to several changes to the board, Porsche adjusted its strategy in February and now wants to invest more money in combustion engines and plug-in hybrids in the future. It is also cutting costs. By 2029, around 1,900 jobs are to be cut in the Stuttgart region and around 2,000 temporary contracts will not be renewed.

The numerous problems are also reflected in the business figures: after the slump in 2024, Porsche's profits fell further in the first quarter of 2025. Operating profit amounted to €0.76 billion, 40.6 percent less than a year earlier. At €8.86 billion, revenue was also below the previous year's figure. Porsche therefore recently lowered its forecast for 2025./jwe/DP/stw