BREAKING: Porsche CEO resigns, company moving ahead with VW merger

Wendelin Wiedeking

As reported this past weekend, Porsche is moving ahead with a deal where Volkswagen will buy controlling share in the sports car manufacturer by axing its own CEO – Wendelin Wiedeking. Porsche officially announced today that Wiedeking, the best-paid executive in Germany, along with finance chief (CFO) Holger Haerter would quit the group immediately.

The Piech and Porsche families, which control Porsche, said they will move forward with Wiedeking’s proposal to raise equity by selling a stake to Qatar.

“This should lay the foundations for the creation of an integrated automobile group consisting of Porsche SE and Volkswagen,” Porsche said.

Sources told Reuters that Porsche, as part of the capital increase hopes to raise 2 billion euros cash by selling a stake of less than 25 percent to Qatar, the first time a family outsider might gain voting rights in the company.

Wiedeking opposed a merger with Volkswagen, where the German automaker would have controlling share in Porsche.

– By: Omar Rana

Source: Reuters