Ferdinand Piech, former chairman of Volkswagen, is in talks to sell most of his 14.7% stake in Porsche SE, the holding company that has voting control of VW,
the
Financial Times
reported.
Piech, who turns 80 in April, is the grandson of Ferdinand Porsche, designer of the VW Beetle. The holding company is controlled by the Porsche and Piech families.
Automotive News
called
Piech's sale of his stake “the endgame in a bitter family dispute of the kind that has characterized his life and career.” The trade publication asked why Piech is selling the shares: “Was it Piech's choice, or is he being forced by his family to sell?”
Citing an unnamed source close to the family,
Automotive News
reported, “Relatives say Piech has become increasingly embittered since resigning as chairman of the VW Group supervisory board in April 2015 — a move that pre-empted an ouster led by cousin Wolfgang Porsche.”
Automotive News
reported that the other third- and fourth-generation family members have indicated that they will exercise their right of first refusal for Piech's stake. “That means Piech has little choice but to divest the shares to the same people he has mocked and belittled over the years,” the article said.
According to the
Automotive News
report, Piech said in testimony in a criminal investigation of VW's diesel emissions scandal that as head of the supervisory board he warned VW's management and board — including Wolfgang Porsche — about the crisis. Soon afterward, he resigned from the board after losing a power struggle with former CEO Martin Winterkorn.
VW's management and board “angrily dispute that Piech warned them about the crisis,” the
Automotive News
report said. “For family members, Piech's claim was the final straw, sources say.”
The
Automotive News
article said, “For years, the family put up with Piech's domineering arrogance (he famously stole the wife of his cousin Gerd Porsche) since he was the only one who knew anything about running a car company. By directly incriminating his cousin in a criminal investigation, however, it appears that most of his relatives have finally had enough.”
The
Financial Times
report noted that the holding company has “played down the potential impact” of Piech's share sale. VW chairman and CEO Hans Dieter Potsch said, “It remains the case that the common stock will be held by the Porsche and Piech families.” (Sources:
Financial Times
, March 22, 2017;
Automotive News
, March 27, 2017.)
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