Share price decline at Volkswagen not caused by family ownership, according to Wolfgang Porsche

One of Volkswagen’s most influential members claimed on Monday that the company’s share price slump, which is close to a three-and-a-half year low, is not the result of ownership domination by the Porsche and Piech families.

Ferdinand Porsche is grandson, Wolfgang Porsche, urged Europe’s leading automaker to increase cost savings and improve efficiency. Ferdinand Porsche founded the sports automobile company that carries his name.

Even the historic offering of its Porsche AG business last year has not been able to fix Volkswagen’s low valuation, which some investors attribute to ownership structure-related corporate governance problems.

Through their holding company Porsche SE, which has the majority of the voting rights in the carmaker with its headquarters in Wolfsburg, the Porsche and Piech families effectively control Volkswagen.

Porsche, who also serves on the supervisory board of Volkswagen, said the business could not presume that it would be able to avoid cost-cutting in light of its rivals.

Porsche stated that his nephew Ferdinand Oliver Porsche, who also serves on the supervisory boards of Volkswagen, Porsche SE, and Porsche AG, would make a natural successor in the families’ closely-watched succession planning.