Volkswagen controlling families call for faster overhaul to fend off Chinese rivals

Volkswagen's top investor and controlling family shareholders on Friday issued their clearest message yet to management as the German auto giant weighs the prospect of what could be the most radical overhaul in the firm's 89-year history.

Europe's biggest carmaker has confirmed that it is looking to cut up to 100,000 jobs, twice as many as previously stated, as it seeks to counter a profit slump amid billions of euros in tariff costs and intensifying competition from Chinese car brands.

"The Volkswagen Group is at a historic crossroads," Hans Dieter Pötsch, chairman of the board of management of Porsche SE, 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.

A spokesperson at Volkswagen was not immediately available to respond when contacted by CNBC.

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.

Shares of Volkswagen traded 1% lower on Friday morning. The stock is down nearly 28% year-to-date.

Speaking to CNBC's Annette Weisbach late last month, Volkswagen Chief Financial Officer Arno Antlitz said the auto industry has faced several challenges over the last 12 months, citing the heavy burden of tariff costs and the growing number of car exports from Beijing to Europe, among other examples.

Antlitz also addressed whether the company may look to outsource plant capacity to the defense industry to stave off possible plant closures.

"There are various options. And look, I'm not looking for job cuts per se and I'm not looking for plant closures per se," Antlitz said on July 24.

He continued: "We want to reduce our cost structure and we want to increase productivity and increase the capacity utilization of our plants. And if there are better options then we will obviously look into that."