Thursday 23rd July 2009

Porsche CEO KO'd; VW Takeover Still On

Episode 1049: Porsche directors axed to make way for VW salvage operation

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Porsche announced the resignation of its chief exec Wendelin Wiedeking 'with immediate effect' this morning, as the sports car company and Volkswagen move closer to a happy union.

Wiedeking - a parting gesture?

Wiedeking gets the chop along with his financial director Holger Haerter, who together cooked up the failed plan for Porsche to take over Volkswagen and which has left the otherwise bouyant sportscar maker sinking under billions of Euros of debt. VW's supervisory board is expected to meet later today to sanction the intergration of Porsche into the VW group - where it will become one of 10 brands under the VW banner.

In spite of reports yesterday that Wiedeking was angling for a €100m pay-off, it turns out that his golden parachute is only worth €50m, half of which will apparently go to a social foundation. Wiedeking's successor will be Micheal Macht, who is currently production chief at Porsche.

Porsche - just another Volkswagen...

Yesterday the Porsche board approved ongoing talks with the Gulf state of Qatar over a a proposed capital injection to help pay off its estimated €10bn debt. They then issued a statement saying the two axed directors had come to the conclusion that 'the further strategic development of Porsche is better off if they are not on board', and that their leaving was 'a significant contribution to the appeasement of the situation and to support the forming of an integrated car manufacturing company with Volkswagen'.

In his own personal statement, Wiedeking announced plans to put some of his bonanza into a foundation aimed at the development of 'socially just' factories for Porsche, in cahoots with the Porsche works council. Around €1.5m is also going to foundations that help journalists in need - yes, really!

Hmm... Wonder if that includes journalists who reallyneed a new 911...

 

[plg101]

"In spite of reports yesterday that Wiedeking was angling for a €100m pay-off, it turns out that his golden parachute is only worth €50, half of which will apparently go to a social foundation. Wiedeking's successor will be Micheal Macht, who is currently production chief at Porsche."

€50?

Poor chap. Only €25 after charitable deduction.

[A Scotsman]

Wiedeking's contribution to the world has been considerably greater than that of Fred Goodwin so he deserves his 50m Euro pay off whereas Goodwin deserves nothing.

It's a pity though that Porsche will loose it's independence...

[off_again]

Hang on a minute - I have €15 in my wallet at the moment - happy to contribute towards the severance fund of €50....

[tom g]

How long 'till porkers start donning VAG components?

[Bodo]

tom g said:

How long 'till porkers start donning VAG components?

This will probably happen from 1948 on.

[Fire99]

Bodo said:

tom g said:

How long 'till porkers start donning VAG components?

This will probably happen from 1948 on.

[10 Pence Short]

Ah good, yo've decided to buy the V8 model.

Would you like leather or cloth?

Would you like the standard wheels or the uprated ones?

Would you like standard, metallic or pearlescent paint?

Would you like the Porsche, Lamborghini or Audi bodywork?

[AndySA]

So VW has gone from peoples car maker to now dominate the top end of the super saloon, sportscar and supercar sections of the market. The only market sectors they do not have fully covered by at least one of their brands is the Tata Nano level base model and a proper pick up truck like a Hilux.

[Dagnut]

As naive as I am about finical markets it still amazes me how they spunked it up..

[jontysafe]

Ok, now I am officially confused. I haven't really followed
this story 100% but why can't Porsche sell off their greedily
acquired shares in VW? Is it that VW have been fiendishly
clever in all this and stymied said sale or is Porsche
being clever by holding on to them and seeking investment to
service their debt? Which company will Qatar be investing
in? Post VW take over or pre?

[Streetrod]

Wiedeking has done a great job over the years, in fact if it was not for him Porsche would have gone out of business nearly 20 years ago. But as history has shown us on many occasions when one person has been at the top for too long they start to believe their own hype and feel they have the power to do anything.

Wiedeking created the most profitable car company in the world and was the highest paid executive in Europe, but he wanted more. The bid to take over VW had in theory some good business reasons behind it but the arrogance that was shown in his attempts to take over VW have now been thrown in to stark relief and Porsche now has to pay for that.

Will Porsche suffer under VW ownership? well Audi and Lambo seemed to have done rather well so I would say no.

Is it right for Wiedeking to go? I would say yes. His position had become untenable; basically he had become the guy who had shot the golden goose.

Hopefully a new leadership will inject some new design flair into Porsche as I think it needs it now to survive in such a competitive market.

[Mark-C]

schadenfreude

[Zod]

jontysafe said:

Ok, now I am officially confused. I haven't really followed
this story 100% but why can't Porsche sell off their greedily
acquired shares in VW?

because the price dropped and so Porsche is sitting on a massive loss.

[Bodo]

Zod said:

jontysafe said:

Ok, now I am officially confused. I haven't really followed
this story 100% but why can't Porsche sell off their greedily
acquired shares in VW?

because the price dropped and so Porsche is sitting on a massive loss.

The package they hold must be worth at least the same what they paid for it; however, when they throw 50% of VW AG's shares on the market; they might have a reverse effect to what they induced in Q408

[glazbagun]

Bodo said:

Zod said:

jontysafe said:

Ok, now I am officially confused. I haven't really followed
this story 100% but why can't Porsche sell off their greedily
acquired shares in VW?

because the price dropped and so Porsche is sitting on a massive loss.

The package they hold must be worth at least the same what they paid for it; however, when they throw 50% of VW AG's shares on the market; they might have a reverse effect to what they induced in Q408

Also- werent many of the VW shares bought at the cost of taking out some very large loans? If so- even dropping them back at the price they bought them won't be of help.

[Coupe_Daz]

AndySA said:

a proper pick up truck like a Hilux.

Coming soon is the new VW pick up, called the amarok

[Tiny12]

AndySA said:

So VW has gone from peoples car maker to now dominate the top end of the super saloon, sportscar and supercar sections of the market. The only market sectors they do not have fully covered by at least one of their brands is the Tata Nano level base model and a proper pick up truck like a Hilux.

VW taro...a Hi Lux with a VW badge...ok they dont make them any more...

http://www.volksforum.com/albums/files/7/volkswage...

[Animal]

10 Pence Short said:

Ah good, yo've decided to buy the V8 model.

Would you like leather or cloth?

Would you like the standard wheels or the uprated ones?

Would you like standard, metallic or pearlescent paint?

Would you like the Porsche, Lamborghini or Audi bodywork?

[HellDiver]

I thought Mr. Clarkson said the 911 is just a Beetle anyway...

[Carfiend]

10 Pence Short said:

Ah good, yo've decided to buy the V8 model.

Would you like leather or cloth?

Would you like the standard wheels or the uprated ones?

Would you like standard, metallic or pearlescent paint?

Would you like the Porsche, Lamborghini or Audi bodywork?

Can they do a supercar harlequin like those old Polos and Golfs. Have a wing from a Lambo and maybe a door and a bonnet then a few bits from a R8. Drivers seat from a Veyron and a passenger seat from a Pheaton maybe the rear wheels from a Bentley Conti oh the possibilities are endless.