Although sports car maker Porsche is officially denying the rumors, several German newspapers are reporting that the company's CEO, Wendelin Wiedeking, is leaving the company.
According to both Financial Times Deutschland and Die Welt, the Porsche and Piech families have agreed to current Volkswagen chairman Ferdinand Piech's plan to merge Porsche into Volkswagen. Wiedeking opposes the plan, and another German business weekly, WirtschaftsWoche, said that he would leave Porsche. According to the paper, an interim executive with experience at both companies would replace him.
German paper Die Welt reports that the Porsche and Piech families will formalize a Volkswagen acquisition of 49 percent of Porsche before July 23, when both companies are scheduled to have special board meetings in Stuttgart. Financial Times Deutschland cited specific German lawyers it says will advise Wiedeking as he leaves Porsche.
"Wendelin Wiedeking is doing his job and will continue to do his job," Porsche told news agencies. Porsche labor boss, Uwe Huek, told German television that Wiedeking would stay until his contract runs out in 2012.
Porsche racked up debts of more than €9 billion (about $12.7 billion) when it bought a 51 percent stake in Volkswagen. Wiedeking has been pushing a plan to raise funds for Porsche through deals with Qatar, which would reduce debt via capital injections from the Gulf state and the Porsche Piech families. Meanwhile, Piech has been pushing for Volkswagen to take a stake in Porsche.
Source: Automotive News