Volkswagen power struggle causes chairman to resign

Time 10:14 am, April 27, 2015

16e75bd2-8b86-4313-abe6-1d0470c11dedA POWER struggle at Volkswagen led chairman Ferdinand Piech to step down on Saturday.

Piech, who had been a controlling figure at the carmaker for more than two decades, incited the battle earlier this month when he criticised chief executive Martin Winterkorn, who was expected to succeed him as chairman, in an interview for a German magazine.

Piech, who is the 78-year-old grandson of Ferdinand Porsche, controls 51 per cent of VW along with the rest of the Porsche family. However, he was voted against five-to-one with even his own cousin Wolfgang Porsche siding with Winterkorn.

‘The members of the steering committee came to a consensus that, in the light of the past weeks, the mutual trust necessary for successful cooperation was no longer there,’ the six-member panel said in a statement.

Piech resigned with immediate effect from all of his roles at Volkswagen, as did his second wife Ursula, a former nanny who joined the supervisory board in 2012. Reuters reports that two sources close to the event said Piech resigned so the committee would not have to vote again when it regroups in ten days.

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Rebecca Chaplin's avatar

Rebecca has been a motoring and business journalist since 2014, previously writing and presenting for titles such as the Press Association, Auto Express and Car Buyer. She has worked in many roles for Car Dealer Magazine’s publisher Blackball Media including head of editorial.

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