After a ding to profit, Volkswagens controlling families urge an overhaul.

Porsche SE (PSHG_p.DE), the holding company of the Porsche-Piech auto dynasty and Volkswagen's largest investor, reported a 21% decline in adjusted profit after tax of 382 million euros ($469 million) for the January-March period. The German company's ongoing issues caused a decline in first-quarter profit at their holding group. On Wednesday, the controlling family shareholders increased pressure on Volkswagen to restructure its business model. The holding company of the Porsche-Piech car family and the biggest investor in Volkswagen, Porsche SE (PSHG_p.DE), reported a 21% decrease in adjusted profit after tax of 382 million euros ($469 million) for the January-March period.

After suffering a 1.1 billion euro loss the previous year, Porsche SE's unadjusted result after tax was a 923 million euro loss due to a 1.3 billion euro non-cash writedown on its Volkswagen stake. As its core automotive holdings struggle with declining profits in a global market under pressure from tariffs, Chinese competition, and a difficult transition to electric vehicles, Porsche SE is turning to defense and artificial intelligence investments, which still make up a small portion of its portfolio. In the first quarter, the company reported earning 60 million euros from the sale of semiconductor startup Celestial AI. As its core automotive businesses see declining profitability in a worldwide market under pressure from tariffs, Chinese competition, and a difficult transition to electrified vehicles, Porsche SE is looking to invest in defense and artificial intelligence. These investments still make up a minor portion of Porsche SE's portfolio; the company reported that the sale of its stake in semiconductor startup Celestial AI brought in 60 million euros in the first quarter.