From The Wall Street Journal ($)
Not just because I own and am moderately happy with a VW Beetle, I am fascinated by the boardroom intrigue at the German carmaker. In a nutshell, the former CEO is now the most powerful shareholder and director, and he’s exerted extreme pressure to reinstate his own management on the company. Out is the director of the VW brand, Wolfgang Bernhard, who also happens to have commanded investor confidenct: “Volkswagen’s market value rose nearly $1.25 billion on the day in October 2004 that [former CEO Bernd ]Pischetsrieder announced he had recruited the former Chrysler executive to the company.”
Oh, and did I mention that that powerful shareholder/director, Ferdinand Piech, is also on the board of Porsche, which has a 27.5% stake in Volkswagen and was founded by Mr. Piech’s grandfather, Ferdinand Porsche? The bottom line: a plan backed by Mr. Piech and top executives from Porsche that would reorganize Volkswagen’s management board along lines similar to those at Porsche. Of course, Porsche sells less than 100,000 cars a year; VW, along with its Audi and other brands, makes more than five million.