Ribaltone summit in Volkswagen Piëch and his wife go away – BBC

automotive

Milan , April 25, 2015 – 18:48

     
     
 

FROM OUR CORRESPONDENT IN BERLIN – The clash Family , of power, of management at the top of the Volkswagen came to the moment of rupture. Yesterday, the President of the Supervisory Board, largest shareholder, until a few days ago untouchable in the group and “patriarch of control”, Ferdinand Piech, has resigned with immediate effect. Apart from the President, the Council and all the positions occupied in the group. The Vice President Berthold Huber will replace him temporarily. The Supervisory Board was also part of his wife Ursula: she also resigned.

How has worn break

This is a break at 360 degrees, in fact. Between the two branches of the family heir of Ferdinand Porsche, precisely the Piëch and Porsche. Among the mighty man of power that so far had not lost any important battle and the other shareholders of the group: in addition to the cousins, in particular the government of Lower Saxony which generally moves along with the trade unions, the latter in the Supervisory Board with ten seats out of twenty. And of course with Martin Winterkorn, chief executive of the group which Piëch had said that he had “removed” two weeks ago with this opening of the crisis summit. That the clash is resolved definitively not said the grandson of the inventor of the Volkswagen Beetle, 78, is not a man who easily accept defeats. Of course, this is it: the moment when he asked the head of Winterkorn, found himself isolated on the Executive Committee of the Council, composed of six members, and eventually had to resign. In a statement, the company claimed that the parties no longer there, “the confidence.”

The weight of the government of a Land

In the coming days and months you will see the full significance of the step back of one of the most powerful men of ‘German industry (he is Austrian, resides in Salzburg). Surely, the waves will drop from the top to the branches of the Volkswagen group. Without Piëch, will have more power, not so much the cousins ​​of the Porsche branch, led by Wolfgang, as the unions and the government of Lower Saxony that were decisive in the support to Winterkorn. This could become a political issue: the first European car manufacturer and second in the world in which the role of the government of a Land and trade unions is crucial.
An even greater power ends up on the shoulders of Winterkorn. And this could create cracks between the CEO and the men most linked to Piëch, starting with the number one Porsche – part of the group – Matthias Müller, who in recent days it seems that Piëch had offered the post of Winterkorn. A period of instability is not one in which the Volkswagen probably hoped, engaged in a cost reduction and struggling with brilliant results in America and some European brands.
In the background, you will have to see how to evolve the relationship between the private shareholders. First, among the Piëch and Porsche, who have so far controlled the group with 51% of the voting rights. But then also with Qatar Holding, which at the end of 2014 it held 15.6% of the shares and who had expressed some dissatisfaction on Group. Difficult that the story is so close, with Ferdinand Piëch retired. The world of German industry can not believe it.

April 25, 2015 | 18:48

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