Autoblog

Wife of VW paterfamilias Piëch up for Audi supervisory board

Michael Harley — Thu, 11 Apr 2013 07:58:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Audi, Porsche, Volkswagen

In a move seen as yet another way for the controlling Piech-Porsche family to leverage its muscle over the continent's biggest automaker, Ursula Piech - wife of chairman Ferdinand Piëch - is set to join the Audi supervisory board at the annual shareholder's meeting on May 16. Putting Piëch's wife, a 56-year-old kindergarten teacher, on the board is seen as just a formality as the Piëch and Porsche families already control more than 90 percent of the Porsche SE holding company (owner of a majority of Volkswagen common stock).

Although formally trained to educate young children, this isn't Ursula Piëch's first corporate role. In 2010, Piëch chose his wife to be deputy head of two Austria-based foundations that control owned stakes in Porsche and VW. She took a seat on the board of Wolfsburg-based VW almost a year ago.

Chairman Piëch will turn 76 next week, and his wife is set to take over her husband's interests when he dies.

Wife of VW paterfamilias Piëch up for Audi supervisory board originally appeared on Autoblog on Thu, 11 Apr 2013 07:58:00 EST. Please see our terms for use of feeds.

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Chrysler and Fiat offering $1,000 rebates to VW owners as Marchionne gets tough

Zach Bowman — Mon, 10 Dec 2012 18:02:00 EST

Filed under: Car Buying, Chrysler, Volkswagen, Celebrities, Fiat

The throw-down between Fiat CEO Sergio Marchionne and Volkswagen has heated up in earnest. According to Bloomberg, Fiat and Chrysler are now offering current Volkswagen owners in the US $1,000 rebates to trade in their ride. It's the latest in a series of shots Marchionne has taken at his German rival. As you may recall, the Fiat executive entered into a spat with Volkwagen board chairman Ferdinand Piëch and CEO Martin Winterkorn in October after the duo called for Marchionne's resignation from presidency of the European Automotive Manufacturers Association (AECA). At the time, the Volkswagen executives were quoted as saying Fiat would not survive the European economic downturn.

In response, Marchionne called the German executives "reprehensible," and accused Volkswagen of using a pricing strategy that has created created a "bloodbath" in the EU. Volkswagen has taken to steep discounting to carve out ever-larger slices of market share in Europe, but the company has a much smaller foothold in the US. Marchionne may be trying to hit Volkswagen where the manufacturer is weakest with the new Fiat new incentive program.

Late last week, the Fiat executive was voted to a second term as ACEA president.

Chrysler and Fiat offering $1,000 rebates to VW owners as Marchionne gets tough originally appeared on Autoblog on Mon, 10 Dec 2012 18:02:00 EST. Please see our terms for use of feeds.

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Ferdinand Piëch regrets letting designer Schreyer leave for Kia

Zach Bowman — Mon, 12 Nov 2012 17:35:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Volkswagen, Alfa Romeo

Volkswagen Group Chairman Ferdinand Piëch has seen his fair share of executives leave the company's brands during his time at the helm, but according to Automotive News, he now openly regrets allowing Audi designer Peter Schreyer to go. During a rare interview - with an even rarer admission of fault - Piëch made it clear his company should not have let the talented designer head for Kia, saying plainly, "We should not have let him go." But that wasn't the only revelation. Piëch will remain in his current position for at least another five to seven years in order to usher in the next-generation Volkswagen Golf - this, despite the fact that he's 75 years old and has already been at the top of the company for 18 years.

More importantly, it appears as if VW isn't through snapping up brands. Piëch has mentioned his interest in Alfa Romeo in the past, and the chairman has said there's room in the stable for another nameplate that needs a little restructuring. Like most automakers, Alfa Romeo has struggled amidst the European recession, and its business picture wasn't exactly rosy before the economic downturn. Of course, that news runs contrary to reports we heard in September, when Volkswagen CEO Martin Winterkorn said his brand was done buying up other companies.

Ferdinand Piëch regrets letting designer Schreyer leave for Kia originally appeared on Autoblog on Mon, 12 Nov 2012 17:35:00 EST. Please see our terms for use of feeds.

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Sergio Marchionne calls VW execs 'reprehensible,' singles out Piech

David Kiley — Mon, 01 Oct 2012 08:01:00 EST

Filed under: Europe, Volkswagen, Fiat

Fiat chairman Sergio Marchionne said Friday he will keep his title of President of the European Automotive Manufacturers Association [ACEA], a day after he excoriated Volkswagen executives for calling for his resignation and suggesting in public that Fiat would not survive the economic recession in Europe without a government rescue.

The ACEA CEOs met at the Paris Motor Show, as they do every year, Friday morning after Marchionne, meeting with reporters Thursday, dared VW executives to call for his resignation in the meeting, in compliance with the lobbying group's governance. Marchionne called "reprehensible" recent actions by VW executives, including supervisory board chairman Ferdinand Piech (right) and CEO Martin Winterkorn (left) for calling for his resignation from ACEA through the VW press office.

Indeed, Stephan Gruehsem, VW's chief spokesman, said in July that Marchionne was not qualified to head the ACEA and threatened that VW would quit the organization after a New York Times article said that Marchionne blamed VW's pricing strategy for creating a "bloodbath" in Europe.

Continue reading Sergio Marchionne calls VW execs 'reprehensible,' singles out Piech

Sergio Marchionne calls VW execs 'reprehensible,' singles out Piech originally appeared on Autoblog on Mon, 01 Oct 2012 08:01:00 EST. Please see our terms for use of feeds.

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CEO says Volkswagen's buying spree is over

Chris Tutor — Mon, 03 Sep 2012 18:03:00 EST

Filed under: Lotus, Porsche, Volkswagen, Alfa Romeo, Fiat

After adding Italian motorcycle icon Ducati to its stable and spending $5.6 billion on the rest of Porsche, Volkswagen CEO Martin Winterkorn says he's done shopping for a while.

"We have enough to do at the moment in taking our twelve brands to where we want to be," Winterkorn tells German newspaper Handelsblatt.

Rumors of VW's pending purchase of Malaysian carmaker and Lotus owner Proton have been swirling for a while - as recently as July. And a year ago, VW Chairman Ferdinand Piëch implied interest in relieving Fiat of its Alfa Romeo brand. But Winterkorn says his company is just too busy integrating Porsche and Ducati into the corporate structure to add any more brands right now.

"That I find Alfa Romeo an interesting brand is not a secret," Winterkorn said. "But we are currently busy enough with our brands."

At least one industry analyst, Michael Punzet of DZ Bank, thinks VW wouldn't pass up a bargain-priced Alfa or Proton if offered. "But at the moment I guess they are really focusing on integrating Porsche AG and consolidating the truckmakers MAN and Scania," Punzet said.

Read the full story at Bloomberg.

CEO says Volkswagen's buying spree is over originally appeared on Autoblog on Mon, 03 Sep 2012 18:03:00 EST. Please see our terms for use of feeds.

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Audi deal to buy Ducati valued at $1.1B

Zach Bowman — Tue, 17 Apr 2012 12:33:00 EST

Filed under: Performance, Europe, Audi, Earnings/Financials, Motorcycle

Automotive News is reporting that Audi is set to lay down $1.1 billion to purchase Ducati from the motorcycle manufacturer's current owner, Investindustrial. The news comes courtesy of a source "familiar with the matter," though neither Audi nor Investindustrial have officially commented on whether that price is accurate. As Automotive News points out, the price is around seven times what Ducati earned last year before interest, taxes and depreciation - even after subtracting any debt Ducati holds. Currently, the motorcycle maker's liabilities are less than $262.6 million.

Most analysts view the purchase as a thinly veiled jab at rival BMW, itself a longtime motorcycle builder. Last year, the Italian firm sold somewhere in the neighborhood of 42,000 bikes with a revenue of $630 million. While that's technically more than either Bugatti or Lamborghini, both Volkswagen brands, adding a motorcycle manufacturer to the VW portfolio probably won't do much for the rest of the company's brands. Longtime industry watchers may remember that VW Chairman Ferdinand Piech tried to purchase Ducati once before in 2008 before loosing out to Investedindustrial.

Audi deal to buy Ducati valued at $1.1B originally appeared on Autoblog on Tue, 17 Apr 2012 12:33:00 EST. Please see our terms for use of feeds.

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Report: Piech says Alfa Romeo sales could increase fourfold under VW ownership

Chris Shunk — Wed, 02 Mar 2011 13:41:00 EST

Filed under: Etc., Earnings/Financials, Alfa Romeo, Fiat

Alfa Romeo builds some really good-looking rides, but that apparently hasn't translated into profits for Fiat. In a recent interview with Forbes, Fiat CEO Sergio Marchionne reportedly called the Italian brand a "money loser," and sales of the marque have consistently underwhelmed. But while Fiat has worked hard to rehab Alfa Romeo to no apparent avail, Volkswagen Chairman Ferdinand Piech feels his people can do better.

Reuters reports that Piech declared at the Geneva Motor Show that VW could raise Alfa sales from about 100,000 units per year to 400,000 or more in a scant five years. The boasting by Piech may seem more than a bit cocky, but that confidence jibes well with VW's bold proclamations that it will become the largest automaker on earth by 2018.

So what prompted Piech to announce to the world that VW could sell more Alfas than Fiat? We have no idea, and Marchionne has shown little public interest in selling the brand in the past. VW is obviously interested in buying Italy's sweetheart, though, and the German automaker likely has the cash and can take a liability off Fiat's books.

[Source: Reuters | Image: Nigel Treblin/AFP/Getty]

Report: Piech says Alfa Romeo sales could increase fourfold under VW ownership originally appeared on Autoblog on Wed, 02 Mar 2011 13:41:00 EST. Please see our terms for use of feeds.

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Mulally tops Motor Trend Power List for 2011

Jeff Glucker — Mon, 27 Dec 2010 12:59:00 EST

Filed under: Etc., Ford

Motor Trend has compiled and released its annual Power List. This is the seventh year in which MT ranks the names of heaviest hitting personalities in the automotive industry. They're all ranked in order of just how much juice they hold, and sitting at the top of this year's list is Alan Mulally.

Ford's CEO was previously ranked No. 10 in 2009 and rose to No. 2 last year, but this year, MT has him sitting in the pole position. Their argument? Mulally has moved Ford into a place of profitability as well as quality in both design and engineering. In the magazine's words, "every Ford competitor needs a leader like Alan Mulally."

Ford didn't just see a win with Mulally earning the top honor. The automaker saw 10 of its employees in total make the 2011 Power List. General Motors is right behind them with nine folks earning recognition. After those two, the nearest competitor is Volkswagen with six people spread out across VW, Audi and Porsche.

The last few years have seen a flip-flopping trend between domestic and import bosses rising to the top spot on the power list. The 2010 edition saw VW's Ferdinand Piëch as the numero uno automotive player and he's still strong for 2011 with a fall of just one spot to claim the number two position. In 2009, Rick Wagoner was number one before free-falling off the list, and in 2008, Takeo Fukui of Honda sat at the Power List peak.

It's not just team leaders like Mulally and Piëch who make the annual Power List. Well-regarded Hyundai USA CEO John Krafcik checks in at No. 10, five spots down from his boss, Chung Mong Koo, Hyundai's global chairman. Peter Schreyer, head of design for Kia is ranked 13th overall and climbed way up from last year's rank of 44th. Doug Parks is GM's vehicle line executive for the Chevrolet Volt, and making sure that car arrived on time and in impressive fashion has landed him in the No. 20 spot.

You don't even need to work for an automaker to make the list because Top Gear's Jeremy Clarkson is ranked the 49th most powerful automotive figure... in the world.

The top 10 are as follows:
1. Alan Mulally (CEO, Ford)
2. Ferdinand Piëch (Chairman of Supervisory Board, Volkswagen AG)
3. Carlos Ghosn (President/CEO, Nissan/Renault)
4. Martin Winterkorn (Chairman of the Board of Management, Volkswagen AG)
5. Chung Mong Koo (Chairman, Hyundai)
6. Mark Reuss (President, GM North America & Vice President, GM)
7. Lewis Booth (CFO, Ford)
8. Derrick Kuzak (Group VP Product Development, Ford)
9. Sergio Marchionne (CEO, Fiat/Chrysler)
10. John Krafcik (Hyundai USA, CEO)

Head on over to Motor Trend to read about all 50 players on their 2011 Power List, and then stop by the comments to leave your two-cents about what you think of the list.

[Source: Motor Trend]

Mulally tops Motor Trend Power List for 2011 originally appeared on Autoblog on Mon, 27 Dec 2010 12:59:00 EST. Please see our terms for use of feeds.

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Report: Volkswagen eyeing Ferrari stake?

Noah Joseph — Thu, 11 Nov 2010 13:29:00 EST

Filed under: Volkswagen, Ferrari, Rumormill

If Volkswagen has taught us anything, it's that you can never be too rich or have too many high-dollar automakers under your umbrella. Europe's largest auto group already encompasses Lamborghini, Bugatti and Bentley, is in the process of absorbing Porsche, and makes a couple more six-figure sports cars with Audi badges. But according to reports coming in from Europe, VW has its eyes set on acquiring yet another top-dollar automaker: Ferrari.

Given that it already owns Maranello's most direct competitor, you might be inclined to file this report in the "wild rumor of the day" category and be done with it. And while you'd certainly be justified, there's a whole lot of eyebrow-raising statistics surrounding this report. Rival Fiat group has been looking for ways to raise capital to keep both itself and Chrysler going, and selling stake in Ferrari has been tipped as a possible avenue. Reports have also linked Volkswagen - which reportedly has some $27 billion in cash on hand - with a possible Alfa Romeo takeover.

For his part, Fiat/Chrysler CEO Sergio Marchionne says neither is on the table, but Volkswagen chairman Ferdinand Piech has shown us nothing if not a penchant for buying up any brands he fancies. Given the fact that Fiat needs cash and Volkswagen is willing to spend, we wouldn't rule anything out just yet.

[Source: Automotive News - Sub. Req.]

Report: Volkswagen eyeing Ferrari stake? originally appeared on Autoblog on Thu, 11 Nov 2010 13:29:00 EST. Please see our terms for use of feeds.

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Report: Ferdinand Piech finalizes will that protects his VW/Porsche shares from the kids

Jeff Glucker — Tue, 21 Sep 2010 10:01:00 EST

Filed under: Etc., Volkswagen, Earnings/Financials

Ferdinand Karl Piëch, head of the Volkswagen Supervisory Board and grandson of Ferdinand Porsche, knows that nothing lasts forever - especially, life. The VW boss man has his mind on his money while his family has his money on their minds.

Piëch, born in 1937, has recently shifted his holdings into two Austrian foundations; Ferdinand Karl Alpha and Ferdinand Karl Beta. The reason behind this move is to protect the company in the event of his death. That's to say, if he dies his family can't start selling off shares like platinum hot cakes. His wife Ursula Piëch will assume control of the foundations upon his passing.

As stipulated in his will, the assets can be sold only when the managing board, the advisory board of the trust and at least nine of Piëch's 12 children all provide a "yes" vote. As you would expect, some members of the family are a little miffed. Also, under the stipulations presented in the will, Mrs. Piëch is not allowed re-marry or divorce Ferdinand after he passes on. If she does go out and find a new hubby, she gives up control of the foundations.

[Source: FOCUS via The Truth About Cars | Image: Nigel Treblin/AFP/Getty]

Report: Ferdinand Piech finalizes will that protects his VW/Porsche shares from the kids originally appeared on Autoblog on Tue, 21 Sep 2010 10:01:00 EST. Please see our terms for use of feeds.

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Report: Porsche continuing work on small SUV

Sam Abuelsamid — Thu, 01 Jul 2010 14:31:00 EST

Filed under: SUV, Crossover, Porsche

The repeatedly on-again-off-again smaller Porsche SUV is apparently back on again, at least if Ferdinand Piech has his way. And anyone that knows anything of the recent history of the Volkswagen Group and Porsche knows that what Piech wants, Piech almost invariably gets.

According to Germany's Handelsblatt, Piech is intent on adding a fifth model line to Porsche with an SUV below the Cayenne. In order for the program to be financially viable, the vehicle rumored to be dubbed the "Roxster" would need to share a platform with other vehicles in the VW Group. In this case it would probably be the Audi's B8 platform that underpins the Audi Q5, A4, and A5.

The risk that Porsche runs is the same one that General Motors faced for decades with product overlap. Can a Roxster be adequately differentiated from the Q5 to justify a higher price? Can Porsche avoid competing directly with its new corporate cousins at Audi? Porsche obviously wants to compete with the likes of the BMW X3 and Mercedes-Ben GLK, but the Q5 already fills that niche, so is another model necessary?

[Source: Handelsblatt]

Report: Porsche continuing work on small SUV originally appeared on Autoblog on Thu, 01 Jul 2010 14:31:00 EST. Please see our terms for use of feeds.

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1200hp "Super Veyron" winds the rumor mill again

Noah Joseph — Tue, 18 May 2010 19:26:00 EST

Filed under: Performance, Bugatti, Rumormill

Bugatti Veyron 16.4 Grand Sport - Click above for high-res image gallery

A car as powerful as the Bugatti Veyron can do a great many things. Crest the 400 km/h mark. Burn through fuel and rubber faster than a jumbo jet on take-off with the parking brake engaged. But how about stop time? Maybe if you lay down all that twist in the opposite direction off the earth's rotation. Or bring back a rumor that first reared its head some four years ago.

We're talking about the long-rumored 1,200-horsepower "super Veyron." Its arrival has been anticipated for years, and now accounts from Germany are bringing it back to life. According to the reports, Professor Ferdinand Piëch - the former Volkswagen chairman, Porsche heir and father of the Veyron - recently delivered a lecture at the Vienna University of Technology, wherein he briefly alluded to the emergence of the 1,200-hp Veyron, but revealed no further details.

That the quad-turbocharged, sixteen-cylinder Bugatti engine is capable of more than its stated output of 987 horsepower is no secret. And if such a car is in the works, surely Piëch would be among the few in the world who'd know about it, even if he's not sitting in the big seat these days. With the existing Veyron's production run winding to a close, if there were ever a time to make it happen, surely that time is approaching at Veyron-esque velocity.

Gallery: First Drive: Bugatti Veyron 16.4 Grand Sport

[Source: motorline.cc via Teamspeed.com]

1200hp "Super Veyron" winds the rumor mill again originally appeared on Autoblog on Tue, 18 May 2010 19:26:00 EST. Please see our terms for use of feeds.

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Spy Shots: Prototype 2011 Volkswagen Touareg caught naked?

Jonny Lieberman — Thu, 26 Nov 2009 17:58:00 EST

Filed under: Spy Photos, SUV, Europe, Volkswagen

Hey there, odd looking, what you got cooking? Yes, we're pretty positive you're looking (or about to be looking) at the 2011 Volkswagen Touareg caught without its robe on. Visually speaking, not much has changed. The front clip and hood look more in line with the sixth generation Golf/GTI. From behind, you can see an awful lot of Porsche Cayenne - which is not surprising as the two SUVs are very closely related - especially these days.

We're always liked the Touareg. It's one of those special Volkswagens built almost entirely out of Ferdinand Piech's adrenal glands, akin to the Phaeton and Bugatti Veyron. All three are cars built (largely) without compromise. Don't believe us? Allow us to suggest a weekend with the twin-turbo V10 TDI model - it really will bring you around to our way of thinking. 553 lb-ft of blown diesel torque at 1,800 rpm tends to have that effect on people.

The question now is, will this new 2011 Volkswagen Touareg be anywhere near as phantasmagorical as the last one? We can't say (yet), but we're thinking VW's going to probably dial the "hell yeah!" back a bit. That's just the way of things. Of course, they may not. Either way, we just hope they figure out how to make the next one more reliable. A tip of our off roadin' flap hats to Paul!

[Source: Secret New Cars]

Spy Shots: Prototype 2011 Volkswagen Touareg caught naked? originally appeared on Autoblog on Thu, 26 Nov 2009 17:58:00 EST. Please see our terms for use of feeds.

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Rumormill: Volkswagen interested in Ducati... still

Jeremy Korzeniewski — Thu, 15 Oct 2009 08:59:00 EST

Filed under: Volkswagen, Earnings/Financials, Motorcycle, Rumormill

Ducati 1098R - Click above for high-res image gallery

Rumors of a possible motorcycle brand for Volkswagen aren't anything new. It's a well-known fact that Ferdinand Piëch, Chairman of Volkswagen's Board, wishes that the German automaker had purchased Ducati back in 1985 when the Italian bike manufacturer was in dire financial shape.

As recently as last year, Piëch - himself a Ducati rider even at age 72 - commented that Volkswagen could still purchase an unnamed motorcycle manufacturer if the conditions were right. Strike up the rumormill again, boys and girls. The Italian motoring press is reportedly signaling that Volkswagen is making renewed overtures toward Ducati, which, like pretty much all other motorcycle manufacturers these days, is seeing sales and profits take a dive due to the sorry state of the global economy.

Just a few weeks back at the Frankfurt Motor Show, Piëch indicated that the Volkswagen Group was looking to expand, and some took that to mean it would procure a sizable stake in Suziki, another long-rumored target of the German automaker. KTM, maker of the bonkers X-Bow roadster, has also been bandied about as a potential partner. So, is there any truth to the two-wheeled VW rumors? We'll see how it all pans out soon enough, but we're not exactly holding our breath.

Gallery: Ducati 1098 R

[Source: Clutch and Chrome]

Rumormill: Volkswagen interested in Ducati... still originally appeared on Autoblog on Thu, 15 Oct 2009 08:59:00 EST. Please see our terms for use of feeds.

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Porsche's Wiedeking tipped to get $140M golden parachute?

Jonathon Ramsey — Mon, 20 Jul 2009 10:59:00 EST

Filed under: Porsche, Volkswagen

If the rumored deal for Volkswagen to consume Porsche is indeed accurate, then there are only two things left: the shouting, and the sound of Porsche CEO Wendelin Wiedeking departing his post in a Brinks truck filled with €100 million ($141M USD). German newspaper Bild am Sonntag reported "it is now no longer a question of if, but of how Wendelin Wiedeking will step aside, and that he will clear his desk voluntarily in the coming week."

Over his 16-year tenure at the top, Wiedeking has turned Porsche from an automaker offering one iconic car and a couple of others into the maker of one iconic car and several hugely profitable models. Still, his departure now comes after driving Porsche to the brink, and if €100M sounds like a lot of money to leave in humble circumstances, well, that's because it is.

Yet, if this report is to be believed, it's not an outrageous sum in the world of Wiedeking: his pay packet for 2007 was said to amount to €60M ($85M USD). No matter what he gets, and it will certainly be substantial, he will leave behind a company subsequently controlled by its mass market sibling. And although Porsche labor boss Uwe Heck said, "VW will never be able to buy the souls of Porsche employees," their time, their cars and their technology are another story.

[Source: Drive.com.au | Image Source: Alexander Hassenstein/Getty]

Porsche's Wiedeking tipped to get $140M golden parachute? originally appeared on Autoblog on Mon, 20 Jul 2009 10:59:00 EST. Please see our terms for use of feeds.

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Volkswagen reportedly comes to terms with Stuttgart leadership to absorb Porsche

Sam Abuelsamid — Sat, 18 Jul 2009 15:06:00 EST

Filed under: Porsche, Volkswagen, Earnings/Financials

The family soap opera surrounding the attempted takeover over of Volkswagen by Porsche may soon conclude if a reported deal is approved next week. Porsche SE, the holding company that owns automaker Porsche AG, has attempted to secure its independence by acquiring a controlling interest in Volkswagen. Unfortunately for Porsche, the economic downturn has put the company in danger of insolvency thanks to a hefty debt load.

In the midst of all the financial maneuverings, a personal drama has steadily unfolded as well. Porsche is controlled by the descendants of Ferdinand Porsche's children, Ferry Porsche and Louise Piëch. The leaders of the Porsche and Piëch branches of the family, Wolfgang Porsche and Ferdinand Piëch, have been at odds throughout this entire process. Piëch is chairman of VW's supervisory board, while cousin Wolfgang holds a similar position at the family business. As the sequence of events progressed, it appeared that Wolfgang Porsche was trying to oust his cousin, while Ferdinand Piëch was trying to eliminate Porsche CEO Wendelin Weideking.

It now appears that the two companies have reached an agreement that will allow Porsche SE pay off much of its €10 billion+ debt. If approved, Volkswagen would pay €8 billion for Porsche in two stages. The first would give VW 49.9%, with the rest coming at a later date.

[Source: Reuters | Image: David Hecker/Getty]

Volkswagen reportedly comes to terms with Stuttgart leadership to absorb Porsche originally appeared on Autoblog on Sat, 18 Jul 2009 15:06:00 EST. Please see our terms for use of feeds.

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VW Piech era could be drawing to close, family planning coup

Sam Abuelsamid — Mon, 15 Sep 2008 08:02:00 EST

Filed under: Hirings/Firings/Layoffs, Porsche, Volkswagen

For the past 15 years Ferdinand Piech has been the guiding force behind Volkswagen, first as CEO and Chairman, and since his mandatory retirement in 2002, as Chairman of the Supervisory Board. Before that he headed Audi and helped to cultivate the four-ringed brand's engineering reputation. However, the Piech era may be drawing to a close as the Porsche takeover of VW looks set to break out into intra-family warfare. While Porsche is public company, much of the voting control is held by members of the Porsche and Piech families, the children and grandchildren of founder Ferry Porsche. While little has been said publicly about what is going on in the boardroom at Porsche and the companies reasons for taking control of VW, Piech has been in the peculiar position, being on both sides of the takeover battle. Earlier this year there were reports that Piech was trying to oust Porsche CEO Wendelin Wiedeking in order to maintain control of VW. It now appears that Piech's own family may have had enough of his control, and cousin Wolfgang Porsche is reportedly preparing to push him out. Piech apparently stayed away from a board meeting on Friday to avoid voting with or against his family on the issue of Porsche cooperating with Audi. The family is apparently incensed at Piech's behavior and want him dismissed.

[Source: Automotive News - sub. req'd]

VW Piech era could be drawing to close, family planning coup originally appeared on Autoblog on Mon, 15 Sep 2008 08:02:00 EST. Please see our terms for use of feeds.

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Next Volkswagen Passat could be built Stateside

Michael Harley — Mon, 14 Jul 2008 10:55:00 EST

Filed under: Sedan, Plants/Manufacturing, Hatchback, Volkswagen

Following-up on last week's announcement that Volkswagen was looking at Alabama for a new manufacturing facility, the German automaker's management board is expected to make their final recommendation today. Following that announcement, Volkswagen's supervisory board, headed by former VW group CEO Ferdinand Piech, will make its decision by tomorrow. Whether Huntsville, Alabama, or second-choice Chattanooga, Tennessee, gets the nod, the move is key for Volkswagen as they attempt to increase sales in the United States with more targeted, and lower priced, vehicles. In addition to the Volkswagen Jetta (itself being redesigned to better compete with the Honda Civic) the new facility will produce an all-new Passat-sized sedan with a base price of about $20,000. Larger, in order to compete with the Toyota Camry, the new sedan would undercut the current Volkswagen Passat's pricing by about $5,000--a significant margin. The plant would open in late 2010 with an annual production capacity of nearly 250,000 vehicles.

[Source: Automotive News, subs. req'd]

Next Volkswagen Passat could be built Stateside originally appeared on Autoblog on Mon, 14 Jul 2008 10:55:00 EST. Please see our terms for use of feeds.

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Wolfgang Bernhard could leave VW if commitment doesn't come by Friday

Frank Filipponio — Tue, 14 Nov 2006 18:34:00 EST

Filed under: Hirings/Firings/Layoffs, Volkswagen

Looks like Wolfgang Bernhard may have taken the appointment of Martin Winterkorn as future Volkswagen AG CEO personally. Reports are swirling that Bernhard is likely to step down soon. Newspapers are reporting today that VW has asked for a commitment from Bernhard by Friday. German business newspaper Handelsblatt said Bernhard had threatened as early as May to resign if Winterkorn became CEO.

This would be a pretty big loss for Volkswagen, as Bernhard is widely regarded as a savior for VW because of his efforts to cut costs in Germany. Some put Bernhard's contribution to Volkswagen's bottom line as high as $9 billion (7 billion euros) by 2008. That has come mainly as a result of restructured benefits and extended working hours for VW's 100,000 workers at its plants in western Germany.

This comes on the heels of last week's shakeup that saw the group's chief executive Bernd Pischetsrieder stepping down after a power struggle with VW chairman Ferdinand Piech. That resulted in the nomination of Audi CEO Martin Winterkorn as the new head of VW. Bernd has since been reassigned to the trucking arm of VAG.

[Sources: Reuters and Automotive News, sub req]

Wolfgang Bernhard could leave VW if commitment doesn't come by Friday originally appeared on Autoblog on Tue, 14 Nov 2006 18:34:00 EST. Please see our terms for use of feeds.

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