Porsche boss steps down

Porsche’s CEO Wendelin Wiedeking has stepped down from his role in a move that suggests a merger between the Zuffenhausen firm and Volkswagen is very much on the cards.In a statement released today Wiedeking, 56, and Porsche's chief financial officer Holger Haerter will leave with immediate effect.

Since becoming Porsche CEO in 1993, Wiedeking’s fortunes with the company have undergone a number of ups and downs. He took the company from the verge of bankruptcy to becoming a carmaker with some of the highest profit margins in the industry. Conversely, he is also seen as the integral decision-maker with regards to the company’s ill-fated attempts to buy out Volkswagen AG.

By borrowing heavily to accumulate VW shares, Porsche accumulated debts to the tune of 10 billion Euros (roughly R100 billion) and was brought to the brink of financial ruin by the repayments. Wiedeking’s departure was announced after a meeting of Porsche’s supervisory board.

Although he is no longer a part of the company, Wiedeking will hardly be left out of pocket. Reports indicate that he will be taking a severance package worth around R1 billion to leave. During his time at Porsche Wiedeking also commanded a salary based on 0,9 per cent of Porsche's pre-tax profit. This equated to R827 million earned last year.

Porsche's production chief Michael Macht, 48, will replace Wiedeking. Macht's achievements at Porsche include an integral part in establishing the firm's Liepzig plant, as well as involvement in both Cayenne and Panamera projects. Thomas Edig, 47, head of human resources, will be his deputy, the company said.

The supervisory board of Volkswagen AG own supervisory board will meet this afternoon to formulate the likely merger between itself and Porsche.