Major car brand confirms plans to close three subsidiaries and axe 500 jobs in 'painful' move

TRENDING Stories Videos Your Say Porsche said that it no longer saw Cellforce Group GmbH as having a sufficiently viable long-term perspective, with around 50 employees being affected.The management team of the German automaker will initiate discussions with the works council about the closure of the company.Porsche eBike Performance was impacted by changing market conditions, prompting the worldwide joint venture to be ditched.As a result of the closure, operations at Ottobrunn and Zagreb will be impacted, in addition to around 350 employees.Cetitec GmbH specialised in developing software for data communication for Porsche and the wider Volkswagen Group, although market conditions have affected the performance of the business.Around 60 employees in Germany and 30 in Croatia will be impacted, with management teams set to meet to lay the groundwork for the future.Dr Michael Leiters, Chairman of the Executive Board of Porsche, said: We must refocus on our core business. This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts - including our subsidiaries.LATEST DEVELOPMENTSParking giant NCP confirms nationwide closure of 29 popular car parks - full listLabour to launch new driving laws for road offences as motorists given hours to deliver verdictBritish icon Vauxhall to produce new electric car with Chinese brand LeapmotorThe overhaul of these businesses follows the planned decision for Porsche to sell its stakes in Bugatti Rimac, and the Rimac Group.On April 24, Porsche announced that it had agreed to sell its equity stakes in the two companies to a consortium led by New York-based investment firm HOF Capital.The transaction is still subject to customary conditions precedent, including regulatory clearances. The deal is expected to be completed by the end of the year.Porsche previously held a minority stake of 45 per cent in Bugatti Rimac in 2021, while Rimac Group controlled 55 per cent. Porsche also holds a 20.6 per cent stake in Rimac Group.Mate Rimac, CEO of Bugatti Rimac, thanked Porsche for being a crucial partner, noting that the company now had a structure to execute even faster on our long-term vision.This was emphasised by Dr Michael Leiters, CEO of Porsche AG, who thanked Mr Rimac and the team for their collaboration in previous years.He added: In setting up the joint venture Bugatti Rimac together with Rimac Group, we successfully laid the foundation for Bugatti's future. And as an early-stage investor of Rimac Group, Porsche made a significant contribution to developing Rimac Technology into an established Tier-1 automotive technology company. Now, with the sale of our stake, we demonstrate that we will focus Porsche on the core business. Our Standards: The GB News Editorial Charter