Ferdinand Piech has resigned as Chairman of Volkswagen following a leadership battle with Chief Executive Martin Winterkorn.
End of an era as Piech loses power struggle
Ferdinand Piech has resigned as Chairman of Volkswagen following a leadership battle with Chief Executive Martin Winterkorn. The six members of a steering committee voted 5–1 against Piech, who is the grandson of company founder Ferdinand Porche. Piech criticised Winterkorn in a recent magazine interview and there have been allegations that he had plotted to replace him with Matthias Mueller, current CEO of Porsche. The 78-year old has held power at the firm for more than 20 years and has successfully ousted executives in the past, including Winterkorn's predecessor Bernd Pischetsrieder.
Volkswagen released a statement saying that, 'the mutual trust necessary for successful cooperation was no longer there'.
Berthold Huber has stepped in as interim chairman and the company is expected to try to line up a replacement for Piech before its annual meeting on 5 May.
Piech remains a board member of the Porche SE holding company which controls 51% of the Volkswagen group.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
