Executive Board and General Works Council of Porsche AG agree on Future Package

Executive Board and General Works Council of Porsche AG agree on Future Package

• Future Package is the basis for the strategic realignment as part of the “Sportwagenschmiede 35” strategy.
• Porsche plans to invest a cumulative of 2.1 billion euros in the Zuffenhausen and Weissach sites by 2035.
• Comprehensive measures aim to significantly reduce personnel costs, increase flexibility at the sites and significantly increase productivity.
• Socially responsible reduction of a further 5,000 jobs by 2035, largely through natural attrition, demographic effects, the expansion of the special partial retirement programme and voluntary severance agreements.
• Porsche extends employment and site protection until 2035.

Stuttgart. Employment and site protection until 2035 and investments totaling a cumulative 2.1 billion euros in the Zuffenhausen and Weissach sites: these are the central cornerstones of Porsche AG’s Future Package, which the Executive Board and the General Works Council have negotiated – together with IG Metall and the Südwestmetall employers’ association. The shared objective is to strengthen the competitiveness of the sports car manufacturer and secure as many jobs as possible in the long term. In order to make these investments possible, the negotiating parties have agreed on a comprehensive package of measures. This will provide the basis for greater flexibility and productivity. The Future Package is a key component of Strategy 2035, which will be presented in detail at a Capital Markets Day in October.

“The Future Package is good for Porsche. It gives us the opportunity to strategically realign our company and invest in our competitiveness,” says Dr. Michael Leiters, Chairman of the Executive Board of Porsche AG. “We are laying the foundation for our ‘Sportwagenschmiede 35’ strategy with this Future Package. Now it is up to all of us to deliver. Because one thing is clear: only by achieving our goals and being economically successful, we can also give our employees the security they need.”

For Ibrahim Aslan, Chairman of the General Works Council of Porsche AG, the Future Package sends a strong signal: “Beforehand few people would have thought that it would be possible that we could reach an agreement on a Future Package extending to 2035 – especially given the current environment. We were able to convince the management that investing in Porsche as a company and in the Zuffenhausen and Weissach sites is an opportunity, and that it will also play a major role in securing employment for another five years. The fact that compromises had to be made is part of negotiations. We are now looking ahead again – for the core workforce and the Porsche brand.” For Aslan, it was important that everyone contribute their fair share. However, he also emphasizes: “The package was hard-fought. Now we have to implement it together with the Executive Board. With the transformation bonus, our colleagues will receive the recognition they deserve.”

By extending employment and site protection until the end of 2035, the company rules out compulsory redundancies during this period. At the same time, the company has committed to investing 2.1 billion euros in the future viability of the Zuffenhausen and Weissach sites during this period. This is intended to ensure, for example, that two-door sports cars continue to roll off the production line in Zuffenhausen in the long term, that the volume of the Sonderwunsch programme can be expanded and that development activities for all model lines continue to be concentrated in Weissach.

A comprehensive package of measures will help finance these investments. It is intended to significantly reduce personnel costs and make work at the sites more flexible and productive.

The main measures in short:

• Among management and employees covered by the Porsche-specific pay framework, a total of 3.5 percent of the current collectively agreed pay increase and future pay increases will be deferred until 2035.
• In 2027 and 2028, senior and top management will waive an equivalent contribution from increases in basic remuneration.
• In addition, one-off payments will be adjusted: for Christmas bonuses, the voluntary company share will fall from 45 to five percent by 2035, reducing the Christmas bonus from up to 100 to 60 percent of a monthly salary. In the future, the voluntary special payment will be geared even more closely to the company’s success and profitability.
• In the future, mobile working will remain possible for a maximum of eight days a month instead of twelve.
• Other measures include changes in the framework conditions for break-arrangements and production cycle times.
• The package also includes the socially responsible reduction of a further 5,000 jobs by 2035. This will be achieved primarily through natural attrition, demographic effects, the expansion of the special partial retirement programme and voluntary severance agreements.

For employees with IG Metall membership, there will be an IG Metall membership bonus in the future. This includes one additional day off per year as well as a voucher worth 200 euros per year. Porsche will pay its employees a one-time transformation bonus of 1,500 euros in August 2026, while IG Metall members will receive a one-time increase in the transformation bonus of 411 euros, adding up to 1,911 euros.

Tamara Hübner, Second Representative of IG Metall Stuttgart: “The Future Package shows that transformation can be actively shaped in the interests of employees with strong works councils and a highly unionized workforce. The new membership bonus will make this tangible for members of IG Metall. The extension of employment and site protection until 2035 and the investments are an important signal for the entire workforce and for Baden-Württemberg as an industrial location. The employees are  contributing, and this must pay off: now the company has a responsibility to implement the promised investments and to lead Porsche back on a successful course.”