If there is one thing that Wendelin Wiedeking, German sports carmaker, Porsche’s CEO for 16 years would be remembered for after he steps down from his post, it will have to be his horrendous plan to acquire Volkswagen because of which Porsche is saddling with huge mountains of debt to the tune of $14 billion. Maybe this is why the supervisory board of Porsche Automobil Holding SE unanimously accepted the CEO’s resignation. Did we tell you that Wiedeking is also Germany’s best paid CEO! Had Porsche been an American company, Barack Obama would have definitely thrashed Wiedeking with his famous ‘Say on Pay’ bill! Coming back to Germany, it is believed that despite much controversy surrounding Porsche’s buyout of Volkswagen (that actually triggered the CEO exit), talks of merger may revive once again following Wiedeking’s exodus. But it ain’t as easy as it seems to be. Before the merger talks take any form, certain issues still need to addressed gingerly before the merger gets a green signal.
Interestingly, Wiedeking was the one who got Porsche back from the brink of bankruptcy in 1992. But his idiosyncratic attempts to acquire Europe’s largest automaker, Volkswagen has taken Porsche into deep realms of debt. In fact, the hostile takeover attempts by Porsche opened the doors to Ferdinand Piech, Volkswagen’s powerful Chairman and a part-owner of Porsche, to turn the tables on Porsche. Piech even went to the extent of convincing the company to take over Porsche on the condition that the sports carmaker will improve its finances first. There is no denying the fact that Porsche will have to test the rough waters carefully before going ahead with its decision as experts expect the desired merger to be driving the growth of Porsche for many more years to come.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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Interestingly, Wiedeking was the one who got Porsche back from the brink of bankruptcy in 1992. But his idiosyncratic attempts to acquire Europe’s largest automaker, Volkswagen has taken Porsche into deep realms of debt. In fact, the hostile takeover attempts by Porsche opened the doors to Ferdinand Piech, Volkswagen’s powerful Chairman and a part-owner of Porsche, to turn the tables on Porsche. Piech even went to the extent of convincing the company to take over Porsche on the condition that the sports carmaker will improve its finances first. There is no denying the fact that Porsche will have to test the rough waters carefully before going ahead with its decision as experts expect the desired merger to be driving the growth of Porsche for many more years to come.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Events at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM - Admission Procedure
IIPM, GURGAON
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