Yahoo Finance VW Ends Free Porsche Company Cars For 200 Executives. Now, They Have To Settle With Expensive Audis
Many companies provide their salespeople or management with a company car. Typically, these cars aren’t anything fancy, but in the case of the German car manufacturer Volkswagen, managers were getting two free company cars, including a Porsche, if they wanted.
Don't Miss:
Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500.
Miami is expected to take New York's place as the U.S. Financial Capital. Here's how you can invest in the city before that happens.
However, starting this year, a new policy bans top managers from getting Porsche company cars, except for Porsche managers and high-level executives like VW’s CEO.
Per Bild, one reason for this change is that many executives returned these expensive cars in poor condition, but VW also needed to save money due to financial challenges.
However, some managers are upset and have taken legal action. Several dozen VW managers are protesting against the company’s cost-cutting measures and the cancellation of promised salary payments.
Still, VW management believes those who want a Porsche can afford to buy one themselves. Besides, they won’t be left without a company car. They still have the right to drive two company cars. They won’t be Porsches, but they can be Audis, any VW car, including premium models, or some other VW brand that isn’t a Bugatti, Bentley, or Lamborghini.
As DPA reports, apart from saving millions just by giving their execs cheaper cars, VW launched a savings program expected to improve earnings by €4.3 billion ($4.3 billion) this year, €7 billion in 2025, and €10 billion per year from 2026. Additionally, VW invests in new technologies and restructuring operations to ensure long-term financial stability and competitiveness in the automotive industry.
Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
Porsche, part of the VW group, is ending production of gas-powered models sooner than planned to speed up its switch to electric vehicles. Following Volkswagen’s $5 billion investment in Rivian, a competitor to Tesla, Porsche will stop making petrol versions of its Macan SUV for non-European markets by 2026. This move is part of Porsche's broader sustainability efforts despite a recent drop in electric vehicle demand.
VW also recently announced it has added ChatGPT to some of its cars with the latest infotainment systems, including the all-electric ID family models. This integration is also available on the new Golf, Tiguan, and Passat. With ChatGPT, drivers can now have search results read out loud and use the AI for various tasks without taking their eyes off the road. The feature is accessible through the IDA voice assistant, improving the current capabilities, including controlling the infotainment, navigation, and climate systems.
Read Next:
Elon Musk’s secret mansion in Austin revealed through court filings. Here’s how to invest in the city’s growth before prices go back up.
Will the surge continue or decline on real estate prices? People are finding out about risk-free real estate investing with just $100
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article VW Ends Free Porsche Company Cars For 200 Executives. Now, They Have To Settle With Expensive Audis originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
