The world’s leading car manufacturer Volkswagen is shaken by a big brawl.
In one corner CEO Martin Winterkorn so far been praised for his success with the group.
In the second chairman Ferdinand Piëch who want to get away Winterkorn in a final demonstration of power.
With only two years on his contract as CEO of the large and successful VW group had Martin Winterkorn set on a quiet time until he would take over as Chairman after Ferdinand Piëch.
But Piëch seems set on a last (?) power struggle within the VW. Piëch was the one who once untied the knots between Porsche and VW and subordinate to the merger between VW, MAN and Scania after a long and protracted battle for resources between the three major truck manufacturers.
underachieve in the US
The trigger in the last row is a statement by the Piëch which he announced that “there is a distance between me and Winterkorn.” The reason is said to be that Piëch is dissatisfied with this:
* Volkswagen underachieve in the United States.
* VW has failed to buy Suzuki and thus do not own discount brand.
* Without a cheap car is VW difficult to capture market share in developing countries.
* Winterkorn has not been in several years managed to revive Seat, despite the fact that the new Leon is a step in the right direction.
Profitability drops
* Profitability has fallen since Winterkorn took over after Piëch and is now so low that the results may suffer. VW earn too little money on every car they build – and special it is Volkswagen’s own cars. It is better for brands like Audi and Skoda.
* Maybe playing the latest rumor that VW would be interested to get into Formula 1. Piëch will not agree with Bernie Ecclestone and it is said to be the largest why the VW all these years avoided F1.
Winterkorn set the performances
Now Audi is alleged to be close to stepping into F1 to resolve the Red Bulls problems with Renault engines. That Piëch removes Winterkorn may be the veto, he adds to stop Audi from F1.
The power struggle between Winterkorn and Piëch is the great snack ice in Germany and a board meeting this week failed to resolve any knots.
On the contrary, Winterkorn set an appearance suggesting that the crisis really is serious.
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