Autoblog

Former Porsche CEO Wiedeking indicted over VW takeover bid

George Kennedy — Thu, 20 Dec 2012 14:16:00 EST

Filed under: Europe, Government/Legal, Hirings/Firings/Layoffs, Porsche, Volkswagen, Earnings/Financials

Do you recall the failed efforts by Porsche to take over Volkswagen? According to a Bloomberg report, former Porsche CEO Wendelin Wiedeking (above) and ex-CFO Holger Haerter have finally been charged with market manipulation over the exercising of options as part of the German sportscar manufacturer's ill-fated attempt to take over the much larger VW. That failed bid eventually resulted in the reverse coming true - VW swallowing Porsche.

The charges leveled by Stuttgart prosecutors come after a three-year investigation centered around allegations that Porsche execs made a concerted effort to increase the company's share in VW to 75 percent in preparation for a hostile takeover. Porsche had previously told its investors on at least five occasions that it had no intention to buy VW.

Portions of the investigation have subsided, according to prosecutors, citing an inability to prove certain improprieties with a "necessary degree of certainty." The number of charges is down to 5 from a previous 14 counts regarding "information-based market manipulation."

For its part, Porsche has been quick to point out that the investigation centers around two men who are no longer with the company - Weideking and Haerter stepped down in July of 2009.

Former Porsche CEO Wiedeking indicted over VW takeover bid originally appeared on Autoblog on Thu, 20 Dec 2012 14:16:00 EST. Please see our terms for use of feeds.

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What's ex-CEO Wendelin Wiedeking doing after Porsche? Pizza

Jonathon Ramsey — Wed, 28 Nov 2012 09:00:00 EST

Filed under: Etc., Europe

Three years after an oversize corporate appetite resulted in him departing the CEO's throne at Porsche, Wendelin Wiedeking is back in the hunger business having announced a chain of pizza and pasta restaurants called Vialino. The eatery business isn't new to the former Porsche boss, nor are business interests far from the automotive sector: the former Porsche boss made his first million in real estate before he was 30, owns a restaurant now, and still owns stakes in companies that make shoes among other holdings.

Perhaps more surprisingly, Vialino is controversial before its opened its first outlet. Another Italian chain, Vapiano, is miffed at the similarity between its established name and Wiedeking's brand new one. Wiedeking's response is that his restaurants will have table service, which Vapiano lacks, and that they'll be more rustic in comparison to Vapiano's modern glass frontages. A second Italian chain, L'Osteria, said it opened its books to Wiedeking in 2011 when the exceedingly wealthy entrepreneur was considering buying in, but now that he's gone his own way L'Osteria feels that Wiedeking might just have been sniffing around for some insider context.

With no legal action planned, Vialino remains set to open its first store next month in Ludwigshafen, Germany. After that it plans to expand in Germany, then to Austria and Switzerland.

What's ex-CEO Wendelin Wiedeking doing after Porsche? Pizza originally appeared on Autoblog on Wed, 28 Nov 2012 09:00:00 EST. Please see our terms for use of feeds.

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REPORT: Porsche reportedly offered Wiedeking nearly $200M payout

Chris Shunk — Mon, 27 Jul 2009 09:28:00 EST

Filed under: Hirings/Firings/Layoffs, Porsche, Earnings/Financials

Wendelin Wiedeking sat at the helm of Porsche for 16 of the company's most successful years. Under Wiedeking's watch, Porsche blessed the world's roads with the Boxster, Cayman, Carrera GT, Cayenne and now the Panamera. According to Wiedeking's lawyers, he Porsche and Piech families thought that was enough to warrant a 140 million euros ($199 million) payment to get the successful leader to leave the company.

Wiedeking was reportedly standing in the way of a deal between Porsche and Volkswagen, making his departure a something of a necessary evil. Porsche's labor reps didn't feel Wiedeking's dismissal was worth 140 million euros, so the company instead offered 50 million euros ($73 million). That's still an awful lot of money - especialy for a company that celebrates when it his 100,000 vehicles per year, and Wiedeking apparently agrees. The now ousted CEO claims that he'll give half the money to charity; a move that will likely win him a few new friends.

[Source: Automotive News - subs req'd | Image: Miguel Villagran/Getty]

REPORT: Porsche reportedly offered Wiedeking nearly $200M payout originally appeared on Autoblog on Mon, 27 Jul 2009 09:28:00 EST. Please see our terms for use of feeds.

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Officially Official: Porsche CEO and CFO quit, leave the building

Jonathon Ramsey — Thu, 23 Jul 2009 09:26:00 EST

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

It was really just 35 words that announced the ends of two careers at Porsche: "In the last weeks Wiedeking and Härter have come to the conclusion, that the further strategic development of Porsche SE and Porsche AG is better off, if they are not on board as acting persons." And so, effective immediately, they aren't. The man who ~~would be~~ was king, Wendelin Wiedeking, and his majordomo CFO Holge Härter, have retired from Porsche with immediate effect.

The move was said to clear the way for Porsche to merge with VW and provide some relief for Porsche's balance sheet. After the same meeting that decided Wiedeking's fate, Porsche announced that it planned to increase its capital by €5 billion (about $7.1B U.S.). That's a big chunk of change, but it's only about a third of the company's debt load, and officials didn't say whether that figure would come from banks, Qatar, or some other investor. Wiedeking's position will be filled for now by supervisory board member and former head of production Michael Macht.

For severance, Wiedeking will get half of the package recently mentioned, a still-healthy sum of €50M ($71M U.S.). He has already pledged half of that money to a charity that will assist in job creation in Germany. Härter will receive €12.5M ($17.8M). Wiedeking, of course, hasn't said anything about where he might go from here, but at only 56 and with his story, we have a feeling we'll see him in the saddle again before long.

[Source: The New York Times]

Officially Official: Porsche CEO and CFO quit, leave the building originally appeared on Autoblog on Thu, 23 Jul 2009 09:26:00 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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REPORT: Porsche denies word that CEO Wiedeking will hand over the keys amidst deal talk

Jonathon Ramsey — Thu, 16 Jul 2009 14:29:00 EST

Filed under: Porsche, Volkswagen

This executive cycle isn't uncommon, especially in Germany: CEO displays great leadership over time, then decides to do something daring, then gets caught in a series of unfortunate events, then gets a tarnished reputation, then departs the formerly high-flying company (see also: "Schrempp" and "Pischetsrieder"). Porsche CEO Wendelin Wiedeking is hoping to avoid that last phase, and his company has been fighting back rumors that his departure is imminent.

With Porsche swimming in debt, Volkswagen allegedly making extortionate claims, and Porsche considering selling 49% of its car business to Wolfsburg, several German business papers are reporting that Wiedeking is eying the exit. Automotive News reports that a writer at the Financial Times Deutschland went so far as to report that the CEO had hired attorneys to advise him. The scenarios presented in case of an exit suggest that an interim CEO will take over until a successor is named.

The head of Porsche's labor union, though, said that the reports aren't true, and Wiedeking "is doing his job and will continue to do his job." What's more, he said that the Porsche and Piech families have not agreed to join the companies, that no decision will be made without discussions with Porsche's supervisory board, and that the 49% share that VW might take in Porsche is worth double the amount being offered. As with so many family sagas, this one is a long way from being over.

[Source: Automotive News, sub req'd | Image: Alexander Hassenstein/Getty]

REPORT: Porsche denies word that CEO Wiedeking will hand over the keys amidst deal talk originally appeared on Autoblog on Thu, 16 Jul 2009 14:29:00 EST. Please see our terms for use of feeds.

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REPORT: Daimler, Porsche dismiss talks of stake as "speculation"

Jonathon Ramsey — Mon, 22 Jun 2009 10:28:00 EST

Filed under: Mercedes-Benz, Porsche, Earnings/Financials

Daimler's Dieter Zetsche has called 2009 a "Darwin year" for the car business, with the weak and the lame being pulled down by larger forces. Surprisingly, Porsche was one of those businesses that nearly went under, and it has been looking for help almost anywhere it could get it. Reuters says that Germany's Manager Magazin recently reported that Porsche and Daimler held talks in May regarding Daimler taking a stake in either Porsche or VW in order to help Porsche balance its books.

The article asserted that Zetsche and Porsche's Wendelin Wiedeking were looking at options including a cash exchange for a piece of Porsche, or a derivatives purchase from Porsche that would then be converted in VW shares. Spokesmen for both carmakers has since called the report "pure speculation" and are refusing to comment further. If such a scenario were explored, we know how it would help Porsche -- but what would it do for Daimler?

[Source: Reuters]

REPORT: Daimler, Porsche dismiss talks of stake as "speculation" originally appeared on Autoblog on Mon, 22 Jun 2009 10:28:00 EST. Please see our terms for use of feeds.

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Frayed Nerves: Is Porsche an automaker, or a hedge fund?

Jonathon Ramsey — Fri, 20 Feb 2009 17:02:00 EST

Filed under: Porsche, Earnings/Financials

Some analysts are wondering if Porsche isn't running itself more like the Blackstone Group than as an automaker. The option trades it used last year to take control of Volkswagen netted the German automaker €6.8 billion. The business of selling cars netted Porsche just €1 billion over the same period. And that's not all: Porsche made an additional €392 million trading shares in other companies on the German exchange.

This has industry watchers trying to figure out how Porsche is looking to make its money, especially considering that its total stock exposure is €31 billion. Even though Porsche has valued its stake in VW at less than half the current value of VW shares, the concern is that VW shares are overvalued and another industry jolt could drive them below the price Porsche paid. And that has people wondering whether the ensuing writedown would cause the controlling Porsche and Piech familes to lose control of the company or inject personal funds to prop it up.

Beyond those hypothetical concerns, Porsche has the real challenge of refinancing a debt that currently comes due at the end of March. With severely reduced cash flow from actually selling cars, Porsche might be looking at unconventional measures, or even the trading floor, to help it out. But after making jokes at the opening of the Porsche Museum that went 100% over budget, if Porsche CEO Wendelin Wiedeking is nervous about the company's financials, you'd never know it.

[Source: Financial Times]

Frayed Nerves: Is Porsche an automaker, or a hedge fund? originally appeared on Autoblog on Fri, 20 Feb 2009 17:02:00 EST. Please see our terms for use of feeds.

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Porsche head predicts a hedge fund will swallow GM or Ford

Jonathon Ramsey — Mon, 01 Dec 2008 13:01:00 EST

Filed under: Etc., Europe, Chrysler, Ford, GM, Porsche

Little guy Porsche is taking huge swings, and not just at the giant that is Volkswagen. Porsche head Wendelin Wiedeking had fierce Teutonic words for General Motors and Ford, and banks. His Rindfleisch - beef, that is - with U.S. automakers is that, through unsound practices, they have thrown absolutely everything into turmoil. In the words of the Guardian, in fact, they have driven "the industry to the brink of ruin."

Those are big and perhaps hyperbolic words. But he then singles out GM for "openly threatening" the U.S. Government with bankruptcy, and predicts a hedge fund will take control of "one of the U.S. car manufacturers." Since Chrysler is already controlled by a hedge fund, that only leaves GM and Ford as the possible subjects of that comment. We can't imagine a hedge fund trying to swallow GM or Ford, especially after Cerberus has taken such a beating with Chrysler that seemingly all they can say is "Must... find... the exit."

Wiedeking is on more Earthly ground when he talks about the little guys, suppliers, who are quietly going under -- even though many of them ran their business correctly -- due to the banks' refusal to lend money while the clash of automotive titans continues. In a quote that people in many different industries can applaud, he says "We need banks to give credit, not just talk about credit ratings but start real actual lending to companies." Amen. Thanks for the tip, Sonny!

[Source: The Guardian]

Porsche head predicts a hedge fund will swallow GM or Ford originally appeared on Autoblog on Mon, 01 Dec 2008 13:01:00 EST. Please see our terms for use of feeds.

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VW won't get a seat on Porsche's board

Jonathon Ramsey — Wed, 26 Sep 2007 08:02:00 EST

Filed under: Etc., Porsche, Volkswagen

There's no record of VW actually asking for one, but in case they wanted a seat on Porsche's management board, Porsche has said, "Uh, nein." That's the word from Porsche Automobil CFO Holger Härter, who forms half of the management board. The other half is Porsche CEO Wendelin Wiedeking. Nor will the company's charter and co-determination agreements be altered. He did, however, open the door to adding more members in the future.

The worker's board will remain three Porsche and three VW reps, even should Porsche up its stake in VW to 51-percent. Porsche currently owns 31-percent, but if the European Court of Justice strikes down the so-called Volkswagen Law that limits a shareholder's voting stake, it will move to take control of VW.

[Source: Auto News]

VW won't get a seat on Porsche's board originally appeared on Autoblog on Wed, 26 Sep 2007 08:02:00 EST. Please see our terms for use of feeds.

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Porsche exec says "No" to baby Cayenne, again

Damon Lavrinc — Wed, 27 Jun 2007 10:53:00 EST

Filed under: Crossover, Porsche

According to our friends over at Motor Authority, Porsche exec Wendelin Wiedeking has officially denied the development of a cute 'ute designed to slot in below the Cayenne. This news is contrary to last month's report from Autobild that Porsche intended to share a platform with the upcoming Audi A5 and Volkswagen Tiguan, dubbing the stillborn model the "Roxster." This most recent news confirms another story reported back in May.

Wiedeking used his opportunity at the podium today to dispel the rumor and to hype the upcoming sports sedan, the Panamera. However, no word from Wiedeking about a successor to the 928 that could conceivably share a platform with the front-engine, four-door sports car.

[Source: Motor Authority]

Porsche exec says "No" to baby Cayenne, again originally appeared on Autoblog on Wed, 27 Jun 2007 10:53:00 EST. Please see our terms for use of feeds.

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Could Porsche force VW to unload Lamborghini and Bugatti?

Frank Filipponio — Thu, 12 Apr 2007 15:28:00 EST

Filed under: Performance, Europe, Supercars, Audi, Bugatti, Lamborghini, Volkswagen, Earnings/Financials

Is Volkswagen about to shed some supercars from its stable? It could be the case, if statements by Porsche boss/VW supervisory board member, Wendelin Wiedeking, are taken seriously. When asked about the future Bugatti and Lamborghini within the Volkswagen Group, Wiedeking is quoted as saying "no toys anymore." Cash from the sale of these two exotic makers could help VW work on ~~resurrecting~~ restructuring its core Volkswagen brand, which would allow VW to reclaim its position as a true global player.

But it's not all about the Euros. Not surprisingly, it is reported that Wiedeking isn't too happy Porsche might occupy anything less than the top rung in the corporate hierarchy. Imagine Audi R8, Porsche 911 and Lamborghini Gallardo all in the same family - that might be a little awkward. And with a new Porsche supercar reportedly in the works designed to break the top speed record set by the Bugatti Veyron, it can only get worse. Throw in a Murcielago LP640 successor, and we think the sibling rivalry would turn to bloodshed.

Autocar is speculating that Lamborghini could be sold off, but that Bugatti might turn into little more than a coachbuilder. If the Veyron ends up making Bugatti a one-and-done automaker this go-around, we say job well done but hope there's more to come.

Though Wiedeking is a member of VW's supervisory board and his company does now own 31% of the VW Group, the question remains how much influence Porsche really has over the future of VW. German law in this regard is complicated, and as far as we can tell, beyond a voice on the board, Porsche can't do much at the moment to force the sale of Lamborghini and Bugatti, whether it wants to or not.

[Source: Autocar]

Could Porsche force VW to unload Lamborghini and Bugatti? originally appeared on Autoblog on Thu, 12 Apr 2007 15:28:00 EST. Please see our terms for use of feeds.

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