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| Porsche boss steps down with $70m | Porsche boss steps down with $70m |
| (20 minutes 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". |
| Mr Wiedeking leaves with a 50m euros ($70m; £43m) payoff package. | |
| 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. | 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. |
| Now the way is open for VW, Europe's biggest carmaker, to take over Porsche and add it to its brands. | |
| The news comes as the boards of Porsche and VW hold separate meetings on the way forward. | The news comes as the boards of Porsche and VW hold separate meetings on the way forward. |
| 'Reverse bid' | 'Reverse bid' |
| "The news that the Porsche chief executive is resigning is not really unexpected," Credit Suisse automotive analyst Arndt Ellinghorst told the BBC. | "The news that the Porsche chief executive is resigning is not really unexpected," Credit Suisse automotive analyst Arndt Ellinghorst told the BBC. |
| There could only be one loser - and the loser is Wiedeking Profile of Wendelin Wiedeking | There 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." | "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. | 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." | "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. | 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). | 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". | 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. | Porsche's board also endorsed negotiations for the sale of a stake to Qatar to bolster its balance sheet. |
| 'Strategic development' | '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. | 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. | 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 | 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. | 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. | 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. |
| 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 had been 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. |