Post-Piech paradigms

2 September 2015 By Olaf Storbeck

Volkswagen is extending CEO Martin Winterkorn’s term to 2018, ruling him out as next chairman. This leaves room for an independent, external candidate to replace fallen patriarch Ferdinand Piech. VW’s flawed governance might then shift up a gear.

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Volkswagen will extend the contract of Chief Executive Martin Winterkorn by two more years until the end of 2018, it said in a statement on Sept. 2. The executive committee of the German carmaker’s supervisory board backed the move unanimously.

“Together with Professor Martin Winterkorn at the helm we will continue on our successful path of recent years and systematically implement the goals of Strategy 2018,” said acting Chairman Berthold Huber.

Winterkorn survived an attempted ouster by then-Chairman Ferdinand Piech in April. After Winterkorn was backed by other core shareholders and the trade unions, Piech resigned on April 25. Deputy Chairman Berthold Huber, a senior trade unionist, took over as acting chairman until a permanent successor is found.

Huber pointed out in May that the search for a new chairman will take some time. “The supervisory board will address the succession of Piech with the necessary diligence and calm,” Huber said.

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