VW News: Volkswagen Chairman Ferdinand Piech Resigns

[William Maley]

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Breaking news coming out of Germany today as Volkswagen Chairman and grandson of the company's founder, Ferdinand Piëch announced his resignation after losing a public battle to try an oust Volkswagen's chief executive, Martin Winterkorn.

"The members of the Executive Committee have unanimously determined that in view of the background of the last weeks the mutual trust necessary for successful cooperation no longer exists," said Volkswagen's Supervisory Board in a statement today.

"For this reason Professor Dr. Ferdinand K. Piëch has resigned with immediate effect from his position as Chairman of the Supervisory Board and from all his mandates as a Supervisory Board member within the Volkswagen Group."

The battle began earlier this month when Piëch told German publication Der Spiegel: “I am at a distance to Winterkorn.” In other words, your time is up.

But Volkswagen's supervisory board weren't taking the bait.

"The executive committee of the supervisory board of Volkswagen AG states that prof. Dr. Winterkorn is the best possible chairman of the board of management for Volkswagen,” the board said in a statement a few days after Piëch's comment.

Piëch's comment came as a surprise to many, but some believe it has merit. Volkswagen has been having a number of problems ranging from a lack of vision for the future, to struggling in the American marketplace.

Piëch pulled this same stunt back in 2006 when he attacked then-CEO Bernd Pischetsrieder. Although Pischetsrieder was awarded an extension on his contract and got a sudo-apology from Piëch, he was ousted six months after the attack.

Piëch's resignation ends an era at Volkswagen where helped bring the company as a major player in the industry.

For the time being, Berthold Huber will assume interim leadership of the board till a new chairman is found.

Source: Wall Street Journal (Subscription Required), Car and Driver, Volkswagen

Press Release is on Page 2

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Wolfsburg, 2015-04-25

Statement of the Executive Committee of the Supervisory Board of Volkswagen AG

The Executive Committee of the Supervisory Board of Volkswagen AG discussed again today in detail the situation of the Volkswagen Group.

1. The members of the Executive Committee have unanimously determined that in view of the background of the last weeks the mutual trust necessary for successful cooperation no longer exists.

2. For this reason Professor Dr. Ferdinand K. Piëch has resigned with immediate effect from his position as Chairman of the Supervisory Board and from all his mandates as a Supervisory Board member within the Volkswagen Group. In addition, Ms. Ursula Piëch has resigned with immediate effect from all her Supervisory Board mandates within the Volkswagen Group.

3. The position of Chairman of the Supervisory Board will be temporarily assumed by the Deputy Chairman Berthold Huber. Mr. Berthold Huber will chair both the Supervisory Board meeting on May 4 as well as the Annual General Meeting on May 5, 2015.

4. Under the chair of Mr. Berthold Huber the representatives of shareholders and employees will in close cooperation determine the candidate for the new Chairman of the Supervisory Board. The election of the future Chairman of the Volkswagen Supervisory Board will follow a proposal made by members of the Supervisory Board representing shareholders.

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[David]

VW is heading down the same path of Old GM. The future is bleak for VW and their ultra conservative approach to auto's and lack of quality.

 

Might as well merge VW and Fiat and then flush out all the old executives and board and kill off the products that suck and stop wasting billions on old name plates that should not be brought back.

[smk4565]

Peich doesn't seem like the type to go quietly. I imagine he will try to work up a merger or company split or something. He still owns 10% of Porsche and Porsche owns 51% of VW.

[William Maley]

Peich doesn't seem like the type to go quietly. I imagine he will try to work up a merger or company split or something. He still owns 10% of Porsche and Porsche owns 51% of VW.

 

I was reading that, but some reports say that Porsche family - which Peich is related to, is quietly stepping away from him.

[regfootball]

funny how the Germans have to rely on being lux car makes to be successful.  When they need to be everyman cars, it becomes difficult.  I know VW does well in other parts of the planet, but i have a feeling the German POV in building cars isn't completely well suited to VW increasing share in the US.

[smk4565]

funny how the Germans have to rely on being lux car makes to be successful.  When they need to be everyman cars, it becomes difficult.  I know VW does well in other parts of the planet, but i have a feeling the German POV in building cars isn't completely well suited to VW increasing share in the US.

Sort of like how American car companies have to rely on pickups and SUVs to turn profit, we know the Cobalt, Focus, and Caliber weren't paying the bills.  VW brand does really well elsewhere in sales, just not here.   Profit per car on a VW globally is only like $700, not that much.

 

I don't see Peich just retiring to Austria to drive his Veyrons, the guy is going to come back with a vengence because he is a narcissist.

[Drew Dowdell]

 

funny how the Germans have to rely on being lux car makes to be successful.  When they need to be everyman cars, it becomes difficult.  I know VW does well in other parts of the planet, but i have a feeling the German POV in building cars isn't completely well suited to VW increasing share in the US.

Sort of like how American car companies have to rely on pickups and SUVs to turn profit, we know the Cobalt, Focus, and Caliber weren't paying the bills.  VW brand does really well elsewhere in sales, just not here.   Profit per car on a VW globally is only like $700, not that much.

 

I don't see Peich just retiring to Austria to drive his Veyrons, the guy is going to come back with a vengence because he is a narcissist.

 

 

But that's not the case anymore.  GM and Ford have learned new tricks and are putting out small cars that actually compete in their segments.  Chrysler is a little bit further behind in the Dart powertrain, but the vehicle itself is a solid buy. 

 

I wonder if this move seals the fate of the VW Passat. 

[regfootball]

I don't believe the world economy can support the German marques and they way they build.  The more likely future outside of autonomous cars is we devolve into having to settle for Tatas and Suzukis due to world regulations and lack of enough world spending power to drive anything else.  VW is saddled with the German overhead.

 

Maybe I can reincarnate my old Suzuki sales self in the future when you want to trade in your Mercedes S class for something you are allowed to own in the future.

 

 

 

funny how the Germans have to rely on being lux car makes to be successful.  When they need to be everyman cars, it becomes difficult.  I know VW does well in other parts of the planet, but i have a feeling the German POV in building cars isn't completely well suited to VW increasing share in the US.

Sort of like how American car companies have to rely on pickups and SUVs to turn profit, we know the Cobalt, Focus, and Caliber weren't paying the bills.  VW brand does really well elsewhere in sales, just not here.   Profit per car on a VW globally is only like $700, not that much.

 

I don't see Peich just retiring to Austria to drive his Veyrons, the guy is going to come back with a vengence because he is a narcissist.

 

 

But that's not the case anymore.  GM and Ford have learned new tricks and are putting out small cars that actually compete in their segments.  Chrysler is a little bit further behind in the Dart powertrain, but the vehicle itself is a solid buy. 

 

I wonder if this move seals the fate of the VW Passat.