Chairman Ferdinand Piech has allegedly begun quietly rallying against chief executive Martin Winterkorn, meeting with other members of the Piech and Porsche families to erode support for the executive, unnamed sources told German broadcaster NDR.
The chairman two weeks ago made public comments suggesting he had lost confidence in Winterkorn, however an executive committee — which included Piech and a handful of other board members — later made a formal announcement of support for the embattled chief executive and promised to recommend a contract renewal.
The latest report suggests Piech has stepped up his campaign in secret, attempting to convince other board members and large shareholders that the automaker should hand the reins to Porsche chief Matthias Mueller or Skoda CEO Winfried Vahland.
Piech has not publicly detailed his reasoning for making the first disparaging comments, but lackluster sales in key markets — VW brand shipments in the US, in particular — are viewed as a potential factor in the dispute. VW’s cost-cutting strategy has also progressed slowly, with profit falling 14 percent in 2014 and operating margins reduced to just 2.5 percent — well below the company’s peers.
The dispute has been credited with driving down VW’s share price, which has fallen by nearly 10 percent since Piech’s first comments were published. The company’s shareholder meeting is scheduled for May 5.
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