ADias

Jul 23, 2009, 1:15 a.m. EST
Porsche CEO to step down

LONDON (MarketWatch) -- Confirming rumors swirling over the last week, Porsche Automobil Holding (DE:PAH3 52.77, +2.75, +5.50%) said Wendelin Wiedeking has agreed to resign as chief executive of the sports car maker he's run since 1992, and wll accept a 50 million euro ($71.2 million) termination fee. Holger Haerter, head of finance, also is leaving and is getting 12.5 million euros. Michael Macht, currently board member of Porsche AG in charge of production and logistics, will be the next CEO, and Thomas Edig, board member in charge of human resources of Porsche AG will become his deputy. Separately, Porsche's board said it will accept preparations for a 5 billion euro capital raising and Qatar's potential investment for a possible deal with Volkswagen AG (DE:VOW 249.38, +0.13, +0.05%).

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Extraordinary account here: Family Feuds Behind VW-Porsche Deal

Edgy01

WW did a terrific job with Porsche for a long time,--and then got just a bit too greedy. He's great as making cars but out of his league with dealing with the families.

Eric - Plug Guy

http://www.nytimes.com/2009/07/24/bu....html?_r=1&hpw

djcxxx

I wouldn't mind being forced out of my job w/ a $71 million "don't let the door hit you on the way out".

Bijan

This is the announcement German style:
http://www.porsche-se.com/pho/en/new...d=2009-07-23-3

ltc

A. he was always greedy and an egomaniac.
B. he did such a great job that, in spite of telling us that without the Cayenne and the Panamera, Porsche could no longer stay independent and thus ENSURE the future of the 911
C. he took "the most profitable car company on the planet" to the brink of bankrupcy in less than a year? It either means he was lying and Porsche was NOT the most profitable car company on the planet or Porsche wasn't a car company but a financial holdings company that had a history of making cars.
D. he never achieved his stated goal (of his famous 10 year plan) of 100K cars/year at all costs.
E. the Panamera may end up being his Phaeton.

So, what happened?
Porsche is no longer independent and the future of the 911 is in doubt.

Sorry, he was the wrong person for the job right from the start. People inside PAG knew it, except those who only cared about profits at all costs.

The only thing I look forward to is his obituary.

texas911

The future of the 911 is in doubt? Hasn't that been the case since the 70's?

cascade

I think the finance guy has a lot of blame here -- he seemed to want to prove how smart he was with his VW option strategy -- it was not only questionable in terms of legality -- but obviously not well thought out re. the end game. This managment/ownership turmoil is bound to affect the cars -- a real shame.

Eric - Plug Guy

Cascade - the CFO took the perp walk with him too.
Lewis - tell us how you really feel.

cascade

Yeah I saw that -- replete with juicy severance package (12MM euros).

tincanman99

The 911, Boxster, Cayman and Cayenne will no doubt soldier on. The 911 symbolizes Porsche and there is no way VW is going jeopardize that. The Cayenne will survive because its basically a Toureg with a different name and engine. Engineering costs are low because it shares so much with both the Toureg and Q7.

That being said VW is not stupid. Whatever you may say about Piech is anything but stupid. Egomaniac - yep but I think he will be good for Porsche.

agdamis

All I have to say is it is over.

The 997 will be the last real Porsche enjoy yhem gents, we are the lucky few.

ltc

I would not be so quick to arrive at that conclusion.

Over the past year or so, there were Audi proposals for 2 door vehicles (some looked very interesting) that were shelved, since it was considered too competitive with the Boxster/Cayman. Of course, this was based on the assumption that PAG would run VAG.
Now that this is not the case, I can not see how VAG allows the PAG lineup to remain as large as it is, especially with the far too numerous variants (14 alone in the "911" family"?

VAG has developed a strategy of positioning similar models between VW and Audi far enough part on the pricing charts (usually by simply decontenting VW cars and making options unavailable on certain trim levels) as to maintain 'brand identity and status'.
The question is how this will occur between Audi and Porsche, combined with Lamborghini.

The "911" future in motorsports will likely be the first to go, based on a desire to put a midengined car forward to successfully compete with the Ferrari. The RS Spyder is no longer being developed at the same pace as other cars.
The "911" unique history may allow it to survive in a far reduced trim level/variant form, if for nothing else out of respect for the model, the history and the name.

The simple question for VAG is going to be:
Exactly how profitable IS Porsche as a car brand?

boolala

Yawn.

Personally I won't be losing any sleep over this.

If there's no 911, then there will be plenty of other cars to choose from.

gota911

+1,000