Why Porsche CEO is stepping down

Marketplace Staff Jul 23, 2009
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Why Porsche CEO is stepping down

Marketplace Staff Jul 23, 2009
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TEXT OF STORY

Bill Radke: A Porsche can outrace a Volkswagen, but the head of the Porsche company could not outrun V-Dub. This morning, Porsche announced its CEO is resigning. Volkswagen had a lot to do with that, as Brett Neely reports from Berlin.


Brett Neely: Porsche’s boss, Wendelin Wiedeking, was credited with saving the company when he joined 16 years ago. Then he set his sights on taking over Volkswagen, many times Porsche’s size. He came close, but failed in the end. That left the company with billions in debt just as the recession hit, and made it a takeover for Volkswagen.

Auto expert Stefan Bratzel says there’s only one way to interpret Wiedeking’s resignation:

Stefan Bratzel: Now, it seems clear that Porsche and Volkswagen will be within a common company.

Wiedeking, who was Germany’s best-paid CEO, won’t leave the company empty-handed. He’s getting a $70 million golden handshake. To keep critics quiet, Wiedeking announced that half the money will go to charity. One cause he’s supporting: a fund to help out aging journalists in need.

In Berlin, I’m Brett Neely for Marketplace.

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