Following a failed takeover of Volkswagen , Porsche has fired CEO Wendelin Wiedeking and CFO Holger Härter. Wiedeking orchestrated the failed takeover of VW, leaving Porsche with a debt of $12 billion and a cash shortfall somewhere in the neighborhood of $3.5 billion.
Rumors of Wiedeking’s dismissal have been circling the internet rumor mill for several days now, but Porsche made the announcement official on Thursday. Wiedeking took over as Porsche CEO in 1993, taking the company from the brink of bankruptcy to one of the most profitable marques in the world. However, Wiedeking’s failed acquisition of much larger VW has left Porsche, once again, in a dire financial situation.
Härter, Porsche ’s CFO, has also been released by the German automaker, according to The New York Times. While Wiedeking setup the business takeover of VW, Härter handled all of the finances behind the deal.
The departures of Wiedeking and Härter will likely pave the way for an integration of the two automakers, making Porsche the 10th brand under the VW umbrella.
Wiedeking, already Germany’s highest paid executive at €77.4 million, will receive a €50 severance package from Porsche. However, Wiedeking has already set aside €25 million of that figure for charitable organizations.
