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Two of Volkswagen?s biggest shareholders have agreed on Wednesday to prolong the term of Ferdinand Piech as board chairman. The decision was rather contradictory to the earlier plan of removing VW?s board chairman and finally ending a power brawl between the German state of Lower Saxony and Porsche.
In a statement given by Premier Christian Wulff at Volkswagen?s headquarters in Wolfsburg, Germany, he said that the deal ?means that Mr. Piech and I have reached agreement on Volkswagen?s future.? The agreement was right on timing as Piech tries to secure his position at Volkswagen. It should be noted that Piech was also the one responsible for ousting Bernd Pischetsrieder as chief executive in favor of his long time prot?g?, Martin Winterkon.
Piech who is now 69 years old was scheduled to vacate his post in May as head of the supervisory board at VW Wholesale Jerseys From China , Europe?s biggest automaker. But due to the insistence of some shareholders including the Lower Saxony, Piech is to continue with his dual roles as Volkswagen?s chairman and a controlling owner of Porsche, maker of 911 sports cars with headquarters in Stuttgart, Germany.
The plan to change Piech was drafted last January 2006 as agreed upon by Porsche and the Lower Saxony. The board was also supposed to choose a new chairman who is not affiliated in either one of VW?s two biggest shareholders. Fortunately for Piech Wholesale Jerseys China , he was backed by Volkswagen?s labor leaders who happen to hold half of the board?s seats. To cut the story short, when voting time came, Piech got the majority vote which helped him to keep his position as board chairman.
Now that Porsche is firmly occupying the driver?s seat in Volkswagen, ?it will be interesting to see what the state of Lower Saxony does with its stake Wholesale Jerseys , given it seems to no longer want to argue with Porsche,? said Michael Tyndall an analyst with Nomura Securities in London.
Another good news for Porsche is that the European Union?s highest court last Tuesday is nearing decision to finally abolish the law that protects VW from any possible takeovers. This very same ruling if realized will serve as an opportunity for Porsche to finally gain control of Europe?s largest automaker. The news on the possible eradication of the Volkswagen law has resulted to an increase of Volkswagen shares by ?2.17 or 2.5% and closed at ?88.27 which is considered to be the highest since mid-1998.
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