Volkswagen Chief Executive Oliver Blume urged employees to rally behind the automaker’s sweeping restructuring plan, warning that the coming weeks would be critical as the global auto sector grapples with deepening crisis. "Everyone must pull together," Blume told Bild am Sonntag, adding that Volkswagen had launched the largest transformation initiative in its history. His remarks came as internal surveys revealed widespread dissatisfaction among staff over the company’s external communications, with employees and their families described as "distressed and frightened" by what they termed the board’s "disastrous" messaging.
The company’s troubles extended beyond Germany, as Tesla initiated the largest vehicle recall in China’s history, affecting nearly three million electric cars due to safety concerns with retractable door handles. China’s market regulator said the mechanical emergency release mechanisms in some models were insufficiently visible, prompting the recall of both domestically produced and imported Tesla vehicles. The move underscores escalating regulatory scrutiny in the world’s largest EV market.
In corporate developments, Porsche confirmed the sale of its management and IT consulting subsidiary MHP to Tata Consultancy Services (TCS) for €320 million. The transaction, disclosed in Stuttgart and Mumbai filings, marks a strategic shift for the sports car manufacturer as it refocuses on core automotive operations.
Separately, Chinese fast-fashion platform Shein disclosed plans for a Hong Kong initial public offering, targeting proceeds of up to 13.86 billion Hong Kong dollars (approximately €1.5 billion). The company intends to offer 280 million shares priced between HK$47.60 and HK$49.50, with a final price to be set on August 31 and trading to commence on September 1. Shein, founded in China but now headquartered in Singapore, did not specify the allocation of proceeds.
In financial policy news, Commerzbank supervisory board chair Jens Weidmann urged the German government to maintain its stake in the lender for the time being. Speaking to the Süddeutsche Zeitung, Weidmann acknowledged that while the federal holding was originally part of a rescue package, its continued presence could help safeguard German interests amid takeover speculation involving Italy’s UniCredit. He stressed that the government’s role was particularly relevant given the current phase of heightened M&A activity in the sector.
Healthcare policy also took center stage as AOK-Bundesverband chair Carola Reimann warned that statutory health insurers could face annual costs of up to €45 billion if obesity treatments using GLP-1 drugs were fully reimbursed for all insured patients with a BMI of 30 or higher. The estimate, based on projected uptake across Germany’s 70 million insured individuals, highlights the fiscal strain such therapies could place on public health systems.
In labor relations, Germany’s railway union EVG threatened nationwide strikes in regional transport starting in January unless the government enacted stricter penalties for attacks on train staff. Union leader Martin Burkert told Bild am Sonntag that legislation to toughen penalties must pass parliament this year to avert industrial action that could paralyze services.
