The family that controls Volkswagen is done waiting. Its message to the company's leaders is simple: move faster, because Chinese rivals are not slowing down.
The holding company, run by the Porsche and Piëch families, owns 31.9% of VW's equity, which is its share of ownership in the carmaker.
The real control comes from voting rights, which decide who gets a say in major corporate decisions. Porsche SE holds 53.3% of those rights, so when the family tells the company to move, the company listens.
Hans Dieter Pötsch, a Porsche SE executive, called the moment a turning point and delivered a blunt warning. "The Volkswagen Group is at a historic crossroads. The decisions that Volkswagen makes now will determine its future," he said.
He warned that delaying decisions will only deepen the company's problems, and he said the focus must stay on what makes business sense. "All other considerations must be secondary," he said.
The company is feeling the squeeze from two directions at once. Tariffs are costing Volkswagen billions of euros, and Chinese automakers are shipping more cars into Europe.
At 89 years old, the company could now be facing the biggest reorganization in its history, and possibly the largest the worldwide auto industry has ever seen.
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Porsche SE's Johannes Lattwein said VW must cut extra factory capacity, lower costs sharply, and make decisions more effectively. He said Porsche SE backs the management and its proposals, with competitiveness as the goal.
"Every option must be considered in pursuing it," Lattwein said.
Workers are watching closely, and they are not happy. Employees protested across the country on July 9, and unions warned of a serious clash if the company presses ahead.
CEO Oliver Blume knows the clock is ticking. "What we do not have is time," he said on July 24, adding that work on the plan has already started.
He said the company's goal is clear. "I can assure you that we have one unequivocal objective: We want to secure the long-term competitiveness and future of our unique Group."
In an interview with CNBC's Annette Weisbach, he said VW wants lower costs, higher productivity, and better use of its plants.
He said there are various options, including using factory space for defense work to prevent closures. "I'm not looking for job cuts per se and I'm not looking for plant closures per se," he said.
So far, the market is not cheering. Volkswagen's stock barely moved on Friday and is down about 27% year to date, so investors have already felt much of the pain behind these numbers.
Porsche SE's own results tell the same story. Adjusted half-year net profit fell 14.5% from the same period last year.
The holding company posted adjusted half-year net profit of 949 million euros, which comes to about $1.1 billion.
Volkswagen says the urgency is real. A spokesperson said Porsche SE's statements support the company's future plan and the push to put it into effect quickly.
Volkswagen shares trade under VOW3-DE, and Porsche SE trades as P911-DE. Both stocks are easy to track as the overhaul plays out.
The next few months will show whether Volkswagen can move from planning to doing. For investors, the difference between a plan on paper and a plan in motion will show up in the share price.
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