RE: Piech resigns from VW's supervisory board
Monday 27th April 2015
An unprecedented power struggle at the very top of the Volkswagen Group between boss Martin Winterkorn and chairman of the supervisory board (and Ferdinand Porsche's grandson, on the right in the lead image) Ferdinand Piech has reached its dramatic conclusion. And if you had your money on the wily Piech having his way you stand to lose because in a couple of terse statements from Porsche SE and Volkswagen it's been confirmed he is out.
Winterkorn (left) and the Piechs all smiles at Geneva"We deeply regret the developments of the last few days," says Wolfgang Porsche in his role as head of principal VW group shareholder Porsche Automobil Holding SE. "We thank Ferdinand Piech for his decades of extraordinary and highly successful service to the Volkswagen Group."
Piech (right) at the presentation of the 917Piech's legacy, from the Porsche 917 to Audi Quattro to the Bugatti Veyron and Volkswagen XL1, demonstrates his visionary ability as both an engineer and corporate heavyweight, proving talent beyond family connections. Is this the last we'll hear of him? Winterkorn and his supporters may have won this fight but whether he'll be sleeping easily tonight or not is another matter entirely.
Piech resigns from VW's supervisory board
Shock outcome to ongoing power struggle at the top of VW
Winterkorn (left) and the Piechs all smiles at Geneva
For its part VW has issued a statement of its own. "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." And with that Piech and his wife Ursula - also a member of the supervisory board - 'resigned' from their positions.
The soap opera and machinations within VW's ruling elite involve family feuds, the local state, powerful unions and more besides. And at the centre of it Piech's power seemed indomitable. But what started as a seemingly minor quip about his lack of faith in Winterkorn's leadership has spiralled, just months after the pair were seated together in front of PH at the Geneva show watching the unveiling of the 911 GT3 RS. They were all smiles then...
Piech (right) at the presentation of the 917
Discussion
American here. Tremendous respect for the man, and... agree with him regarding Winterkorn. Winterkorn's plan to turn around US sales of the VW brand (again, not Audi, Porsche, etc.) was not only completely ineffective, but aside from an early bump in initial sales from cheaper product, looks like a complete misread. Granted, the VW brand has bungled the US market for decades, whereas Audi, Porsche and Bentley are the strongest they've ever been. Seriously, have they considered selling a 3-row SUV like every other auto manufacturer? As much as I hate them, people buy them in droves.
In the UK, "buy a Golf" is relatively common advice (so says all the Brits and Scots I work with). Here, people will cock their head like a confused puppy, due to a combination of both a notoriously price conscious market (which in fairness, Winterkorn tried to address with the Jetta/Passat), a difficult-to-explain disdain of hatchbacks, and that Toyota/Honda reliability was head and shoulders above VW for decades. Except in the midwest, where you buy from the Big 3 (even Dodge/Chrysler, which makes utterly terrible products on the whole) or GTFO.
I just hope Winterkorn and whomever else in charge of the VW brand's direction for the American market realize that it's is going to be a long battle. In parts of the US like the south/midwest, it's also one they're likely to never see significant success with unless they're willing to wait *decades*.
In the UK, "buy a Golf" is relatively common advice (so says all the Brits and Scots I work with). Here, people will cock their head like a confused puppy, due to a combination of both a notoriously price conscious market (which in fairness, Winterkorn tried to address with the Jetta/Passat), a difficult-to-explain disdain of hatchbacks, and that Toyota/Honda reliability was head and shoulders above VW for decades. Except in the midwest, where you buy from the Big 3 (even Dodge/Chrysler, which makes utterly terrible products on the whole) or GTFO.
I just hope Winterkorn and whomever else in charge of the VW brand's direction for the American market realize that it's is going to be a long battle. In parts of the US like the south/midwest, it's also one they're likely to never see significant success with unless they're willing to wait *decades*.
Edited by Goofnik on Sunday 26th April 00:58
J B L said:
Why would they ever need to enter F1 at all?
Why does anyone need to enter F1? It's a roumor that has been going around that many of the management want them to but one thing was standing in the way. It was addresses last week by Bernie in an interview with the BBC at the Grand Prix.http://www.bbc.co.uk/sport/0/formula1/32373718
"Sources in the German automotive industry insist that the only blockage to Audi entering F1 is the antipathy felt for Ecclestone by the chairman of the VW-Audi board, Ferdinand Piech.
Sources say Piech will not allow any of his brands to enter F1 while Ecclestone is in charge."
The arguments and reasons behind this falling out are unclear to me. I have heard talk of poor US results, failure to produce a successful budget car, too slow moving in adopting the MQB architecture or e-technology as among the possible reasons. I haven`t a clue which if any of these were the source of the conflict, but I do doubt it would have been an argument about whether to enter F1.
All that said, the VAG has been extraordinarily successful in blending multiple brands into a successful and profitable whole - even if the VW and SEAT brands remain marginal. For that surely Piech and Winterkorn both deserve huge credit. It certainly is the end of a remarkable career in the German auto industry.
All that said, the VAG has been extraordinarily successful in blending multiple brands into a successful and profitable whole - even if the VW and SEAT brands remain marginal. For that surely Piech and Winterkorn both deserve huge credit. It certainly is the end of a remarkable career in the German auto industry.
One heck of a tough operator, how he got the top job at VW was like a Roman novel - perhaps his only failure is that like a Thatcher or a Blair who should have left earlier, there is a moment when you walk away from the game as his legacy as chief was in my humble view the work of a genius, for sure a megolomainiac genius but without that he would never have made the things that neded to happen happen! Just felt he couldn't let go enough in the Chairman role.
It must be so tough to lead a company with this seemingly enormous brooding presence forever looking over you - did for Bernd and almost did for Winterkorn, but let us not forget how much this is also a family issue - maybe something was said over the Christmas goose?
It must be so tough to lead a company with this seemingly enormous brooding presence forever looking over you - did for Bernd and almost did for Winterkorn, but let us not forget how much this is also a family issue - maybe something was said over the Christmas goose?
I think the F1 thing is a complete white elephant.
If Piech was so against entering F1 how come his organisation has seriously look in to doing o every time ? why have those conversations if there was no intention to enter ?
The last time was when they were setting the new engine regs, VAG were resolute about going for inline 4 cylinder engines and suggested they'd only enter on that basis. Only when they decided to drop out was the engine format opened up to V6s. So they had a fair amount of clout and were obviously seriously contemplating entering as an engine manufacturer.
To me, it doesn't add up that all this would be going on when they had no intention of ever joining. Either that or they were just wasting everyones time ? including their own ?
I don't really think the decision to enter or not was purely based on one grumpy old mans dislike for another grumpy old man, there has to be more to it than that.
I read that his likely replacement is very keen on VAG being in F1 - absolutely no idea how accurate that is, but personally I don't see any gain to VAG being in F1.
They can do all the hybrid R&D/engineering etc off the back of WEC, I don't see it helping them to sell cars in the US where they are struggling.
We may well see them in F1 if this new guy is keen, if they can actually achieve there is another question. Either way, if they do enter I can't see them coming in before 2017, meantime they'll get involved in regulation changes for the 1000hp engines.
If Piech was so against entering F1 how come his organisation has seriously look in to doing o every time ? why have those conversations if there was no intention to enter ?
The last time was when they were setting the new engine regs, VAG were resolute about going for inline 4 cylinder engines and suggested they'd only enter on that basis. Only when they decided to drop out was the engine format opened up to V6s. So they had a fair amount of clout and were obviously seriously contemplating entering as an engine manufacturer.
To me, it doesn't add up that all this would be going on when they had no intention of ever joining. Either that or they were just wasting everyones time ? including their own ?
I don't really think the decision to enter or not was purely based on one grumpy old mans dislike for another grumpy old man, there has to be more to it than that.
I read that his likely replacement is very keen on VAG being in F1 - absolutely no idea how accurate that is, but personally I don't see any gain to VAG being in F1.
They can do all the hybrid R&D/engineering etc off the back of WEC, I don't see it helping them to sell cars in the US where they are struggling.
We may well see them in F1 if this new guy is keen, if they can actually achieve there is another question. Either way, if they do enter I can't see them coming in before 2017, meantime they'll get involved in regulation changes for the 1000hp engines.
Goofnik said:
American here. Tremendous respect for the man, and... agree with him regarding Winterkorn. Winterkorn's plan to turn around US sales of the VW brand (again, not Audi, Porsche, etc.) was not only completely ineffective, but aside from an early bump in initial sales from cheaper product, looks like a complete misread. Granted, the VW brand has bungled the US market for decades, whereas Audi, Porsche and Bentley are the strongest they've ever been. Seriously, have they considered selling a 3-row SUV like every other auto manufacturer? As much as I hate them, people buy them in droves.
In the UK, "buy a Golf" is relatively common advice (so says all the Brits and Scots I work with). Here, people will cock their head like a confused puppy, due to a combination of both a notoriously price conscious market (which in fairness, Winterkorn tried to address with the Jetta/Passat), a difficult-to-explain disdain of hatchbacks, and that Toyota/Honda reliability was head and shoulders above VW for decades. Except in the midwest, where you buy from the Big 3 (even Dodge/Chrysler, which makes utterly terrible products on the whole) or GTFO.
I just hope Winterkorn and whomever else in charge of the VW brand's direction for the American market realize that it's is going to be a long battle. In parts of the US like the south/midwest, it's also one they're likely to never see significant success with unless they're willing to wait *decades*.
Volkswagen's early success with a portfolio of much-loved "people's cars" made clear what the brand is about. Especially in the US. In the UK, "buy a Golf" is relatively common advice (so says all the Brits and Scots I work with). Here, people will cock their head like a confused puppy, due to a combination of both a notoriously price conscious market (which in fairness, Winterkorn tried to address with the Jetta/Passat), a difficult-to-explain disdain of hatchbacks, and that Toyota/Honda reliability was head and shoulders above VW for decades. Except in the midwest, where you buy from the Big 3 (even Dodge/Chrysler, which makes utterly terrible products on the whole) or GTFO.
I just hope Winterkorn and whomever else in charge of the VW brand's direction for the American market realize that it's is going to be a long battle. In parts of the US like the south/midwest, it's also one they're likely to never see significant success with unless they're willing to wait *decades*.
Edited by Goofnik on Sunday 26th April 00:58
Sadly, management seems to have devoted the last 30+ years attempting to be everything but.
Goofnik said:
American here. Tremendous respect for the man, and... agree with him regarding Winterkorn. Winterkorn's plan to turn around US sales of the VW brand (again, not Audi, Porsche, etc.) was not only completely ineffective, but aside from an early bump in initial sales from cheaper product, looks like a complete misread. Granted, the VW brand has bungled the US market for decades, whereas Audi, Porsche and Bentley are the strongest they've ever been. Seriously, have they considered selling a 3-row SUV like every other auto manufacturer? As much as I hate them, people buy them in droves.
In the UK, "buy a Golf" is relatively common advice (so says all the Brits and Scots I work with). Here, people will cock their head like a confused puppy, due to a combination of both a notoriously price conscious market (which in fairness, Winterkorn tried to address with the Jetta/Passat), a difficult-to-explain disdain of hatchbacks, and that Toyota/Honda reliability was head and shoulders above VW for decades. Except in the midwest, where you buy from the Big 3 (even Dodge/Chrysler, which makes utterly terrible products on the whole) or GTFO.
I just hope Winterkorn and whomever else in charge of the VW brand's direction for the American market realize that it's is going to be a long battle. In parts of the US like the south/midwest, it's also one they're likely to never see significant success with unless they're willing to wait *decades*.
I agree that part of the problem is that in the US German cars do not have a reputation for good reliability, as they seem to do in the UK at least. Part of this reputation is probably due to higher parts and labour prices than domestic cars.In the UK, "buy a Golf" is relatively common advice (so says all the Brits and Scots I work with). Here, people will cock their head like a confused puppy, due to a combination of both a notoriously price conscious market (which in fairness, Winterkorn tried to address with the Jetta/Passat), a difficult-to-explain disdain of hatchbacks, and that Toyota/Honda reliability was head and shoulders above VW for decades. Except in the midwest, where you buy from the Big 3 (even Dodge/Chrysler, which makes utterly terrible products on the whole) or GTFO.
I just hope Winterkorn and whomever else in charge of the VW brand's direction for the American market realize that it's is going to be a long battle. In parts of the US like the south/midwest, it's also one they're likely to never see significant success with unless they're willing to wait *decades*.
Edited by Goofnik on Sunday 26th April 00:58
Also as fuel costs many times less in the US than in Europe, it's far less of an advantage to buy a more efficient but more expensive German car. In Europe it's high taxes on fuel and CO2 emissions, that drives the market for higher priced but more efficient vehicles.
Ex-VW Chairman Ferdinand Piech Porsche 918 Spyder
Looks like Bugatti Veyron Super Sport colors.
From the article:
While there's no official confirmation on this, you are looking at Ferdinand Piech's personal Porsche 918 Spyder. Sure, one would expect somebody in his position - he also owns ten percent of Porsche, to own an example of Zuffenhausen's untimate machine.
4 pictures and full article
.
Looks like Bugatti Veyron Super Sport colors.
From the article:
While there's no official confirmation on this, you are looking at Ferdinand Piech's personal Porsche 918 Spyder. Sure, one would expect somebody in his position - he also owns ten percent of Porsche, to own an example of Zuffenhausen's untimate machine.
4 pictures and full article
.
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