Did Piech Lose? Martin Winterkorn Staying As VW CEO

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Could it be? A rare rebuff to the VW Group’s chief puppet master, Ferdinand Piëch? A just-released statement from VW’s supervisory board certainly appears so: “The executive committee of the supervisory board of Volkswagen AG states that prof. Dr. Winterkorn is the best possible chairman of the board of management for Volkswagen.” It further recommends that his contract be extended next year.

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Just a few days ago, few would have expected this outcome. An interjection by the powerful Piëch, who heads the supervisory board, had put VW in turmoil. “I am at a distance with Winterkorn,” he had said—essentially an invitation to quit.

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Piëch had identified a number of issues within VW, such as poor performance in the U.S. market, problematic brand differentiation, declining margins, and an overall lack of vision. Piëch had cut his cordial ties with Winterkorn—out of concern for the company, some say, or out of power lust, others claim.

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By not releasing Winterkorn, the supervisory board buys itself time. There are several contenders for Winterkorn’s job down the road—most prominently Porsche CEO Matthias Müeller and upcoming VW brand chief Herbert Diess.

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Winterkorn’s victory, however, may be hollow. In 2006, then-CEO Bernd Pischetsreider was attacked by Piëch in a similar fashion. In the spring, he was awarded an extension of his contract, and Piëch even offered a sort-of apology. Six months later, the supervisory board moved unanimously to oust him. His successor: Martin Winterkorn

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