• Germany's news in English
 
app_header_v3

Porsche boss and finance chief step down

AFP · 23 Jul 2009, 08:33

Published: 23 Jul 2009 08:33 GMT+02:00

Stuttgart-based Porsche said in a statement that an agreement on the resignations had been reached with the supervisory board and that Wiedeking - said to be the best-paid boss in Germany - would get a golden parachute worth €50 million, of which half was to go to a "social foundation."

Porsche's current production chief Michael Macht, 48, is to succeed Wiedeking, who together with Härter was the architect of Porsche's bid to take over Volkswagen (VW), Europe's biggest automaker.

Porsche currently owns nearly 51 percent of the shares in VW, with which it has been in conflict for several months.

The statement said Wiedeking and Härter considered the step "a significant contribution to the appeasement of the situation and to support the forming of an integrated car manufacturing company" with Volkswagen.

A power struggle between Wiedeking and the head of VW's supervisory board, Ferdinand Piech, had tarnished both companies, and was said to be blocking an investment deal with the Gulf state of Qatar.

Late Wednesday, the Porsche supervisory board approved Wiedeking's plans for a capital increase of at least €5 billion, and talks with Qatar over an additional capital injection.

The measures should allow Porsche to pay off at least part of its estimated €10 billion in debt.

But Porsche, which is owned by the Porsche and Piech families, finally decided to jettison Wiedeking and Härter, saying that the two directors had also "come to the conclusion that the further strategic development of Porsche... is better off, if they are not on board as acting persons."

In a separate statement, Wiedeking said he would give a large part of his severance package to charities, saying the decision was based on "personal reasons and (my) responsibility to society."

Story continues below…

He planned to create a foundation to aid in the development of "socially just" production sites for Porsche in cooperation with the company's works council.

Around €1.5 million was also to be donated to foundations that help journalists in need.

Your comments about this article

Today's headlines
Stuttgart fest pulls in twice as many boozers as Oktoberfest
Is this Oktoberfest or is this Stuttgart's Cannstatter Volksfest? Can you tell the difference? Well, it's Stuttgart. Photo: DPA.

Apparently Munich is no longer the top place to wear lederhosen and down beer one litre at a time.

Dresden mosque, conference hall hit by homemade bombs
The Dresden mosque that was hit by a homemade bomb attack on Monday. Photo: DPA.

Bomb attacks hit a mosque and a congress centre in the eastern German city of Dresden, police said on Tuesday, adding that they suspected a xenophobic and nationalist motive.

The Local List
10 German films you have to watch before you die
Photo: DPA

These films are so good, not even The Cabinet of Dr. Caligari made the list.

Young man destroys 17 cars after visiting Oktoberfest

Early on Monday morning a drunk 29-year-old trashed 17 cars after staggering out of Oktoberfest into the Munich streets. It was one of several eye-popping crimes from "Wiesn" over the past few days.

VW emissions scandal
Audi tech chief leaves after reports link him to 'dieselgate'
Audi's head of technical development Stefan Knirsch stepped down on Monday. Photo: DPA.

Audi's head of technical development stepped down "with immediate effect" on Monday, the luxury carmaker announced, after German media accused him of involvement in parent company Volkswagen's "dieselgate" scandal.

Deutsche Bank shares hit lowest level in quarter century
Photo: DPA.

Shares in Deutsche Bank, Germany's biggest lender, sank to a historic low on Monday after reports at the weekend that Berlin had refused state aid for the embattled lender.

The Local List
The 10 worst German cities for students to find digs
Photo: DPA

It's the start of autumn, which means the start of the university year. But along with the excitement comes the stress of finding housing - and in some glamorous locations this can be a nightmare.

German broadcaster sues Turkey over confiscated video
Akif Cagatay Kilic. Photo: DPA

German international broadcaster Deutsche Welle said Monday it had filed a civil complaint after a Turkish minister's office confiscated a taped video interview with him.

Germany's 'James Bond' goes on trial over tax evasion
Werner Mauss. Photo: DPA.

Germany's former top spy, Werner Mauss, went on trial on Monday accused of hiding millions of euros from authorities.

Germany holds first national 'mermaiding' championship
Photo: DPA

Ariel would be proud.

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Lifestyle
10 German films you have to watch before you die
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
6 things about Munich that’ll stay with you forever
Lifestyle
10 pieces of German slang you'll never learn in class
National
Seven great reasons to stay in Germany this September
Sponsored Article
Retiring abroad: ensuring your health is covered
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
National
Six reasons why Berlin is now known as 'the failed city'
National
15 tell-tale signs you’ll never quite master German
Culture
7 American habits that make Germans very, very uncomfortable
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Culture
Eleven famous Germans with surnames that'll make your sides split
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Lifestyle
The best ways to get a visa as an American in Germany
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
Travel
Enter if you dare: Berlin's best abandoned haunts
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
6,511
jobs available
Toytown Germany
Germany's English-speaking crowd