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Winterkorn receives support of VW board, leadership battle continues

Strange things have been happening - in public, that is - at Volkswagen over the past few weeks, kicked off when VW Group chairman Ferdinand Piech reportedly said he didn't want Group CEO Martin Winterkorn to be the next company chairman, and that he was keeping Winterkorn "at a distance." Winterkorn's ascension was widely believed to be a fait accompli. We were really just waiting for office furniture and desk plaques to be moved around. That led to a meeting of the six-member supervisory board's leadership committee in Piech's office in Salzburg, Austria, not at Group HQ in Wolfsburg, Germany, where the five other members of the committee came out in support of Winterkorn. They also suggested they might extend his contract when it ends in 2016, and then gave Piech an ultimatum to agree to public support of the CEO or they would demand Piech's resignation. At the same time, the company's labor reps and the German state of Lower Saxony issued statements supporting Winterkorn. It's said that the chairman has a number of gripes with the CEO, prime among them being the state of the company's US business for the core Volkswagen brand. Market share has dropped to two percent in the United States and Winterkorn admitted that his team hasn't been properly engaged with our market. Years of effort put into a budget car haven't resulted in much except the company saying it finally knew how to do one, and that was a year ago. It's losing share in Brazil, overall profit margins are down, BMW is taking possession of the green-car credentials among German brands, and it's said that Piech doesn't believe Winterkorn has the vision to do what's necessary. Having agreed to play along and now in "diplomacy phase," some say a little light has gone out of Piech's star inside the company, while others wonder if this battle is truly over. Related Video: News Source: Automotove News - sub. req.Image Credit: JOHANNES EISELE/AFP/Getty Images Hirings/Firings/Layoffs Volkswagen martin winterkorn volkswagen group

Volkswagen Routan dead, pour out a sippy cup for your little homies

America's minivan wolfpack has just gotten smaller by one. According to Automotive News, Volkswagen officials have confirmed what we've suspected for some time - the Routan is dead. Essentially a lightly reworked version of the Dodge Grand Caravan, the Routan actually hasn't been rolling off of Chrysler's Windsor, Ontario production line at all this year, but VW had yet to confirm its discontinuation. However, Jonathan Browning, CEO of VW America, has reportedly admitted that the Routan is being axed, with remaining units expected to be funneled into corporate functions for "internal purposes."
The move isn't unexpected - the Routan has never been a big seller, with just 57,650 examples moved since sales began in 2008 - peak yearly sales totaled under 16,000 units, and that was back in 2010. And while many have talked of the minivan segment shrinking, Automotive News points out that the segment actually grew 14 percent last year to 597,118 units, though it should be noted that most segments have been on sales upticks as the US economy chugs out of its recession.
So, is volume-crazy Volkswagen prepared to pass on large family vehicle sales? Probably not - the German automaker has signaled that it plans to build a three-row crossover in North America soon, and we wouldn't be surprised if it looks an awful lot like the Crossblue Concept from January's Detroit Auto Show - minus the fancy plug-in diesel powertrain.

Piech and Winterkorn still at odds about VW leadership plan

Volkswagen Group Chairman Ferdinand Piech (above, right) and CEO Martin Winterkorn (above, left) will be meeting in the coming days to discuss who the next leader of the Volkswagen Group will be. This, of course, comes after a report last Friday in Der Spiegel where Piech said he didn't want Winterkorn to be the automaker's next chairman. Oh, to be a fly on the wall of that conference room. As Automotive News reports, Winterkorn had been widely viewed as the probable replacement for the 77-year-old Piech, until last week, when the current chairman said he was keeping the CEO "at a distance," in the German paper. While Winterkorn confirmed to German media on Monday that he still had a job, analysts aren't sure what Piech's comments will mean for the 67-year-old CEO's future, with some indicating he may end up being a "lame duck" leader. According to AN, Piech doesn't think that Winterkorn has the vision to lead the sprawling Volkswagen Group empire, even though the current CEO has the support of a number of other VAG stakeholders. "Piech knows what he is doing and will assume that he can get the supervisory board to implement his decisions," former BMW executive turned analyst Helmut Becker told German media, AN reports. Winterkorn has just over 18 months left on his contract, while Piech's term has another two years left on it, meaning it will still be some time before we find out how the Volkswagen Group's leadership issues play out.