Volkswagen's top investor on Friday called on the auto giant to take immediate action to fend off intensifying competition from Chinese car brands.
"The decisions that Volkswagen makes now will determine its future," said Hans Dieter Pötsch, chairman of the board of management of Porsche SE.
Volkswagen has confirmed that it is looking to cut up to 100,000 jobs as it seeks to counter a profit slump.
"The Volkswagen Group is at a historic crossroads," Pötsch said in a statement.
"The decisions that Volkswagen makes now will determine its future. For the sake of the company and its sustainable competitiveness, everyone must now step up and take responsibility." Pötsch warned that the longer decisions are delayed, the bigger the firm's problems will become.
"The focus must now be solely on what is necessary from a business and economic perspective. All other considerations must be secondary," he added.
Johannes Lattwein, member of the board of management responsible for finance and IT at Porsche SE, said it is "imperative" for Volkswagen to reduce excess capacity, significantly lower costs and strengthen the group's decision-making and execution capabilities.
"As the majority holder of Volkswagen AG's ordinary shares, Porsche SE therefore supports the group board of management and its proposals. Competitiveness is the goal," Lattwein said.
"Competitiveness is the goal. Every option must be considered in pursuing it. Otherwise, Volkswagen risks permanently losing ground to its international competitors," he added.
The Porsche and Piëch families control Volkswagen through their holding company, Porsche SE, which is the single largest shareholder of Volkswagen. It owns 31.9% of Volkswagen's equity and 53.3% of its voting rights.
The statements come as Porsche SE reported adjusted half-year earnings after tax of 949 million euros ($1.1 billion), reflecting a 14.5% drop compared to the same period a year ago.
