“How This Auto Manufacturer Saved Millions by Ending a Simple Perk”

Volkswagen has just delivered a shocking demand to its executives: return the luxury cars that have served as their company vehicles for years.

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One of the perks of working for an automotive company is the company car policy. Executives often enjoy free use of company cars, and employees may receive discounts when purchasing vehicles from their employer.

However, as of early July, Volkswagen Group announced cost-cutting measures, including a reduction in executive perks. One of these measures involves taking back company cars previously provided to Volkswagen executives.

Porsche cars will still be allocated to Porsche executives, but Volkswagen executives will no longer have this privilege. Photo: CB

Typically, Volkswagen executives were entitled to at least two company cars, with the option to choose from various brands owned by the German group. This often resulted in many executives opting for two Porsche vehicles. However, with the new measures in place, Volkswagen executives will only be able to use Volkswagen-branded cars.

With over 200 top-level executives at Volkswagen, the choice of their company cars is no small matter. This could have meant up to 400 Porsche vehicles being used, maintained, and repaired at the company’s expense.

According to Volkswagen, many of the returned cars are in poor condition. These vehicles will require refurbishment and upgrades to meet Porsche standards before they can be sold or leased as used cars. The group estimates that this seemingly small change will save them millions of dollars annually.

Interestingly, Volkswagen executives were allowed to choose Porsche cars but not Audi vehicles, which are positioned below Porsche in the market. Photo: Charlie Magee

This decision has faced opposition from Volkswagen executives, some of whom have threatened legal action, arguing that the reduction in perks is equivalent to a pay cut.

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