VW-Audi "takeover" backfires on Porsche!!

[willyjp]

SAN FRANCISCO (MarketWatch) -- Porsche Automobil Holding SE Chief Executive Wendelin Wiedeking is expected to relinquish "operational control" of the German car maker in a reversal of its attempt to take over Volkswagen AG, according to a report published late Friday.

To those who've worried that Porsche would "take over" VAG and "kill" the R8 and/or further sportscar development: Cheers! The hunter has become the hunted!!

It would appear that the Ferdinand Piech camp is now in the driver's seat due to Porsche's serious debt situation and with VW taking a 49% stake in Porsche and Piech (Ferdinand Porsche's grandson) being highly influential within BOTH boards, the spirit that has guided Audi to its present great heights will continue to hold sway.

Almost all of Audi's considerable achievements in racing, sportscars, light alloy construction, marque acquistions (Lambo., Bentley, Bugatti) are attributable to Piech and he probably deserves a lot of credit for inspiring the R8 program. I'm sure the namesake brand (Porsche) will be very safe in his hands, but surely Audi will also continue to prosper! See today's Marketwatch (WSJ) article:
http://www.marketwatch.com/story/por...in-vw-deal-wsj

[harrison]

Really good stuff happenning for Audi during this three year war. Not much interest in Porshe during this war, Not in in my neck of the woods. Maybe more Porsches are bought in Europe than over here??

[smoothy]

The guy that sits next to me at hockey is on the executive of the local Porsche club. I should sneak over to his house and glue a four rings logo on the back of his 911

[harrison]

If he does'nt have an R8 hidden in his stalls he soon will !

[swansailor]

In the news this morning (nice golden parachute!):

Porsche boss steps down with $70m

German luxury car maker Porsche has said chief executive Wendelin Wiedeking and financial director Holger Haerter have resigned "with immediate effect".

Mr Wiedeking leaves with a 50m euros ($70m; £43m) payoff package.

Earlier this year, Mr Wiedeking failed in his attempt for Porsche to take over larger German rival Volkswagen (VW), despite building a 51% holding in VW.

Now the way is open for VW, Europe's biggest carmaker, to take over Porsche and add it to its brands.

[R84ME]

These German family wars are really outrageous - have not changed much since the old days. I still want to see if VW follows through with the Bluesport roadster - especially the TDI!!! I'm there on that one...

[Rob A]

In the news this morning (nice golden parachute!):

Porsche boss steps down with $70m

German luxury car maker Porsche has said chief executive Wendelin Wiedeking and financial director Holger Haerter have resigned "with immediate effect".

Mr Wiedeking leaves with a 50m euros ($70m; £43m) payoff package.

Without the financial crisis Mr. Wiedeking would likely have achieved his aim of Porsche taking over VAG.

According to the German newspapers he receives a EUR 50 mio ($70 mio) termination payment and he stated that he will give half of that to a charitable foundation to benefit mainly Porsche employees. Taking into account that he will pay 50% tax on the remainder that leaves him with about $17.5 mio.

Reportedly he was the highest paid executive in Germany and earned EUR 80 mio/year.

Taking into account that he is the one who built Porsche into what it has become, it seems to me that while he lost he at least did so in an elegant way.

[willyjp]

built Porsche into what it has become

which would appear to be "underwater" financially (ie: broke)

Actually, I think he did a good job in increasing Porsche's bottom line. Which may very possibly have led to some "over-reaching" on the part of his side in the "battle of the cousins." He is an unfortunate casualty in that war.

Reminiscent of other talented managers who have done well and yet been booted by "family" in closely held or family controlled auto companies---Lee Iacocca (engineer by training, like Lutz, and "father of the Mustang) earning Ford $2 billion in a year and getting the boot by Henry Ford II. I believe there have been other examples..possibly a parallel @ Fiat with Agnellis?...though my memory is vague. Actually, F. Piech getting pushed out of Porsche mgt. by his cousins is in some ways similar, though he was also an owner and was not at the top when he was pushed out.

[Rob A]

If memory serves when he took over in '93 Porsche was in very bad shape.

He then turned it into the most profitable car manufacturer in the world (profit margin) and took it from strength to strength.

And then the world financial crisis hit...

[willyjp]

If memory serves when he took over in '93 Porsche was in very bad shape.

He then turned it into the most profitable car manufacturer in the world (profit margin) and took it from strength to strength.

And then the world financial crisis hit...

The crux of the problem was not, I believe, the "financial crisis" or Porshe's revenue drop, since there's plenty of cash in VW to take care of them both.
Rather it was a "predatory" stance on the part of Porsche toward VW, and the history of "bad blood" between the cousins from when the (younger) Ferry Porsche side grandsons in effect blocked the rising career of the oldest Louise Piech side grandson, Ferdinand Piech, by passing the Board resolution that "family" could not be involved in the management side of Porsche. This resulted in Piech pursuing, quite successfully one would have to say, his career at Audi and then VAG.

When Wiedeking, the champion of youngest cousin and Porsche chm. Wolfgang Porsche, undertook speculation in VAG options to attempt a semi-unfriendly conquest of VAG, Piech, who is on BOTH Boards was strongly resistant and cited his necessary loyalty to VAG. Now, Porsche is "Hoist by it's own petard." What goes around, comes around!!

Seems somewhat a case of poetic justice, since, IMHO, Ferdinand Piech is really the scion, the "chip off the old block", of Grandpa Porsche...as far as creative vision in automobiles

see today's WSJ: http://online.wsj.com/article/SB1248...us_marketplace