Prof. Martin Winterkorn the current CEO of Europe’s largest car maker Volkswagen, has won the crucial support of the conglomerate’s apex Supervisory Board. This support puts to rest the question about Winterkorn’s future in the company but raises concern over the role of Ferdinand Piech. Piech is the man who has steered Volkswagen for two decades now, and this decision by the supervisory board of not going with his views is in many ways a rare and unprecedented occurrence.
A power struggle came in to being when Ferdinand Piech, the Group Chairman told a magazine last week that he had distanced himself from Winterkorn and no longer wants him as the next chairman. This comment was made without giving any clarification. The Executive Committee of the Supervisory Board thought better and, in its statement said that Prof. Winterkorn was the best possible CEO and had full support of the Committee. The release also mentions that Winterkorn’s contract which expires next year will also be tabled for extension in the Supervisory Board Meeting scheduled to take place in February 2016.
Martin Winterkorn has done a good job at the helm of Volkswagen. Under his leadership, the German manufacturer has posted record profits and is poised to overtake Toyota as the largest automaker in the world. He is also favoured by the Porsche family who own a controlling stake in the firm.