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Top Porsche managers stand down Porsche boss steps down with $70m
(about 1 hour later)
German luxury car maker Porsche has said chief executive Wendelin Wiedeking and financial director Holger Haerter have resigned "with immediate effect".German luxury car maker Porsche has said chief executive Wendelin Wiedeking and financial director Holger Haerter have resigned "with immediate effect".
The news comes as the boards of Porsche and Volkswagen (VW) meet over competing plans for takeovers and new investors. Mr Wiedeking leaves with a 50m euros ($70m; 343m) payoff package.
Earlier Porsche, which owns 51% of VW, said it would increase its capital by at least 5bn euros ($7.10bn; £4.3bn). Earlier this year, Mr Wiedeking failed in his attempt for Porsche to take over larger German rival Volkswagen (VW), despite building a 51% holding in VW.
And Porsche's board endorsed negotiations for the sale of a stake to Qatar to bolster its balance sheet. It leaves the way open for VW, Europe's biggest carmaker, to take over Porsche and add it to its brands.
The statements came after an all-night meeting on the future of the company. It follows a power battle between Mr Wiedeking and the head of VW's supervisory board, Ferdinand Piech. The news comes as the boards of Porsche and VW hold separate meetings on the way forward.
In a statement the Stuttgart-based carmaker said Mr Wiedeking - one of the top-paid executives in Germany - will get a leaving package worth 50m euros. 'Reverse bid'
Half of that money will go to a "social foundation". Meanwhile Mr Haertner will get a payoff of 12.5m euros. "The news that the Porsche chief executive is resigning is not really unexpected," Credit Suisse automotive analyst Arndt Ellinghorst told the BBC.
'Strategic development'
Mr Wiedeking will be replaced by Michael Macht, the management board member responsible for production, and personnel chief Thomas Edig will serve as his deputy.
There could only be one loser - and the loser is Wiedeking Profile of Wendelin WiedekingThere could only be one loser - and the loser is Wiedeking Profile of Wendelin Wiedeking
"He has... failed to take over Volkswagen, now Volkswagen is going for a reverse bid of the Porsche car business. It think ultimately this is going to be a good outcome."
Mr Ellinghorst pointed out that Porsche and VW have had close links since they were both founded by Ferdinand Porsche in the 1930s.
"The two companies will merge their operations and I think that this is key for their performance. We are seeing all over the world in the auto industry the need for consolidation."
And he said, despite the seeming diversity between Porsche and VW cars, that the two firms would be able to work together on platforms and components.
Earlier, Porsche said it would increase its capital by at least 5bn euros ($7.10bn; £4.3bn).
It said that this new sum would "create the foundation of building an integrated car manufacturing group with Porsche and Volkswagen".
Porsche's board also endorsed negotiations for the sale of a stake to Qatar to bolster its balance sheet.
'Strategic development'
The statements came after an all-night meeting on the future of the company. It follows a power battle between Mr Wiedeking and the head of VW's supervisory board, Ferdinand Piech.
In a statement, the Stuttgart-based carmaker said Mr Wiedeking - one of the top-paid executives in Germany - will get a leaving package worth 50m euros.
Wiedeking and Haerter came to the conclusion in the last week that the further strategic development of [parent firm] Porsche SE and Porsche AG would be better when they were no longer the responsible people on the board Porsche statement
Half of that money will go to a "social foundation". Meanwhile, Mr Haertner will get a payoff of 12.5m euros.
Mr Wiedeking will be replaced by Michael Macht, the management board member responsible for production, while personnel chief Thomas Edig will serve as his deputy.
"Wiedeking and Haerter came to the conclusion in the last week that the further strategic development of [parent firm] Porsche SE and Porsche AG would be better when they were no longer the responsible people on the board," the statement said."Wiedeking and Haerter came to the conclusion in the last week that the further strategic development of [parent firm] Porsche SE and Porsche AG would be better when they were no longer the responsible people on the board," the statement said.
Porsche would not say if the 5bn euros capital increase would come from Qatar.Porsche would not say if the 5bn euros capital increase would come from Qatar.
There has been talk of a possible takeover of Porsche by Volkswagen, and the boards of the two firms are holding separate meetings on Thursday. Mr Wiedeking, 56, joined Porsche in 1983. He left in 1988, but returned to Porsche in 1991 and became chief executive in 1993.
Mr Wiedeking, 56, joined Porsche in 1983. He left in 1988 but returned to Porsche in 1991 and became chief executive in 1993. In June, Porsche said demand for its cars had been hit by the worldwide recession.
In June Porsche said demand for its cars was hit by the worldwide recession.
Global sales at the German carmaker declined 28% to 53,635 vehicles between August 2008 and the end of April, compared with a year earlier.Global sales at the German carmaker declined 28% to 53,635 vehicles between August 2008 and the end of April, compared with a year earlier.
Mr Wiedeking was credited with turning around the automaker in the 1990s but it now has some 9bn euros in debt following his attempts to acquire more shares in Volkswagen. Mr Wiedeking was credited with turning around the automaker in the 1990s, but it now has some 9bn euros in debt, following his attempts to acquire more shares in Volkswagen.