VW CEO threatens resignation if Porsche interferes with the company
December 31st, 1969
Porsche’s slowly tightening grip on Volkswagen is causing some ruffled feathers among upper management. Porsche is on the verge of increasing its stake beyond 50% in Europe’s largest carmaker and is expected to flex its muscles by controlling everything from product development to labor negotiations. However, the CEO of VW, Martin Winterkorn, is fighting back and has said in an interview that he will resign his post if Porsche interferes with his company’s operations.
One of the biggest fears for Volkswagen is that Porsche may limit Audi’s model range to prevent competition with its own range of sports cars, SUVs and (soon to be available) sedan. According to a German report in Der Spiegel, one Audi insider has said that Porsche is already criticizing the company for its R8 sports car and Q7 SUV. In the future, the insider claims, Porsche may limit the price bracket of Audi vehicles to ensure they don’t compete, however this would damage Audi’s ability to compete with BMW and Mercedes, who are both pushing their brands in to higher – and lower – market segments.
Previously Porsche has also stated that ‘fun projects’ such as the Bugatti Veyron would need to be canceled if they were not capable of making a profit. Both Lamborghini and Bentley are currently profitable so they should be safe, however a slide in sales could potentially mean VW would be forced to sell them off at the behest of its largest shareholder.
Winterkorn has also stated he’s worried about the welfare of Volkswagen workers. Porsche is known to push efficiency at all costs, however Winterkorn said the workers must be treated with “appreciation.”
The rivalry between VW and Porsche’s management teams has taken some strange turns in recent times with Volkswagen being accused of spying on Porsche CEO Wendelin Wiedeking using a baby monitor.
Porsche’s slowly tightening grip on Volkswagen is causing some ruffled feathers among upper management. Porsche is on the verge of increasing its stake beyond 50% in Europe’s largest carmaker and is expected to flex its muscles by controlling everything from product development to labor negotiations. However, the CEO of VW, Martin Winterkorn, is fighting back and has said in an interview that he will resign his post if Porsche interferes with his company’s operations.
One of the biggest fears for Volkswagen is that Porsche may limit Audi’s model range to prevent competition with its own range of sports cars, SUVs and (soon to be available) sedan. According to a German report in Der Spiegel, one Audi insider has said that Porsche is already criticizing the company for its R8 sports car and Q7 SUV. In the future, the insider claims, Porsche may limit the price bracket of Audi vehicles to ensure they don’t compete, however this would damage Audi’s ability to compete with BMW and Mercedes, who are both pushing their brands in to higher – and lower – market segments.
Previously Porsche has also stated that ‘fun projects’ such as the Bugatti Veyron would need to be canceled if they were not capable of making a profit. Both Lamborghini and Bentley are currently profitable so they should be safe, however a slide in sales could potentially mean VW would be forced to sell them off at the behest of its largest shareholder.
Winterkorn has also stated he’s worried about the welfare of Volkswagen workers. Porsche is known to push efficiency at all costs, however Winterkorn said the workers must be treated with “appreciation.”
The rivalry between VW and Porsche’s management teams has taken some strange turns in recent times with Volkswagen being accused of spying on Porsche CEO Wendelin Wiedeking using a baby monitor.
VW CEO threatens resignation if Porsche interferes with the company
June 2nd, 2008
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June 2nd, 2008
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June 2nd, 2008
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One of the biggest fears for Volkswagen is that Porsche may limit Audi’s model range to prevent competition with its own range of sports cars, SUVs and (soon to be available) sedan. According to a German report in Der Spiegel, one Audi insider has said that Porsche is already criticizing the company for its R8 sports car and Q7 SUV. In the future, the insider claims, Porsche may limit the price bracket of Audi vehicles to ensure they don’t compete, however this would damage Audi’s ability to compete with BMW and Mercedes, who are both pushing their brands in to higher – and lower – market segments.
Previously Porsche has also stated that ‘fun projects’ such as the Bugatti Veyron would need to be canceled if they were not capable of making a profit. Both Lamborghini and Bentley are currently profitable so they should be safe, however a slide in sales could potentially mean VW would be forced to sell them off at the behest of its largest shareholder.
Winterkorn has also stated he’s worried about the welfare of Volkswagen workers. Porsche is known to push efficiency at all costs, however Winterkorn said the workers must be treated with “appreciation.”
The rivalry between VW and Porsche’s management teams has taken some strange turns in recent times with Volkswagen being accused of spying on Porsche CEO Wendelin Wiedeking using a baby monitor.
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Comments (6 total)
Meet the top commenters on the LeaderboardBy chris #1, Posted: 6/2/2008
this brings up a really good point that i hadn't previously thought of. no matter how compatible two companies may be, if there is a different corporate culture, a different management style, you can very easily kill off any size of company by replacing the head. I think it would be in the best interests of both companies if porsche were able to buy the stake but some how have a very limited control over the company.
It's still amazing to me that a company like porsche can own 20% of VW group, as large of a company as that is. I don't even know how they are able to consider taking a majority share.
By CK MKV Golf #2, Posted: 6/2/2008
The reason that Porsche can buy a controling share of VW is because Porsche is the most profitable automobile manufacturer in the world. They average more profit per unit than any other car maker in the world.
By chris #3, Posted: 6/2/2008
CK, I understand how... I just find it unbelievably amazing. it would be like Apple buying Microsoft.
By Wizards Lore #4, Posted: 6/2/2008
close chris....it would be like Apple buying Dell
By chris #5, Posted: 6/3/2008
however you want to compare it. point is, if you told mr joe average on the street that VW owns bugatti, audi, seat, skoda, bently, etc... and that PORSCHE owns a large share of VW, and is going to buy a controling share... mr joe average would immediately offer to correct you because surely you're mistaken.
By Ultra #6, Posted: 6/4/2008
Tell that bitch ass to quit. CEOs make to much money and they can find a fitting replacement asap .
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