Ferdinand Piech resigns as VW Chairman

The Porsche and Piech families that head Volkswagen AG, were engaged in a battle involving the future of VW CEO Martin Winterkorn, who was defending himself against efforts to oust him. The feud began after VW Chairman Ferdinand Piech publicly criticised Winterkorn. Backed by his strong support base, most expected Winterkorn to remain safe. Now, in a move that has shocked the industry, Ferdinand Piech has resigned from his post as VW Chairman.

Apart from Piech himself, his wife Ursula has also resigned from the board of directors. Labour leaders, the state of Lower Saxony and Wolfgang Porsche came out in support of Winterkorn and Piech was outvoted, keeping Martin Winterkorn’s position as CEO safe. The Porsche and Piech families control 50.7% of VW votes on the board. Lower Saxony has a 20% share, while labour unions have half of VW’s 20 supervisory board seats.

Piech has been a top executive at Volkswagen for over 20 years and is the grandson of Dr. Ferdinand Porsche – founder, Porsche. Volkswagen said that deputy board chairman Berthold Huber would serve as interim chairman, but with Piech's wife out of the picture as well, Martin Winterkorn could be well on this way to becoming the company’s Chairman.

Via: Reuters