Porsche CEO Might Step Down After All

The challenging times for both for Porsche and its CEO, Wendelin Wiedeking, are just beginning, as reports saying he will likely step down in the near future increase in intensity. After an unsuccessful attempt earlier this year from Porsche to take over Volkswagen, the company amassed more than 9 bn euro of debt. With the deal with the Quatar Fund left in the shade, the future looks very murky for the Stuttgart-based auto manufacturer.

The German business daily Handelsblatt reported the two families running Porsche, Porsche and Piech, have reached an agreement about the CEO's future: Wiedeking must step down from his position. The decision is expected to be officially announced on Thursday, after the company's supervisory board meets. The same source reported that Wendelin Wiedeking would fight to keep his job.

After Porsche's supervisory board met last week, they denied reports from the German media that Michael Macht, company's production manager, will replace Wiedeking as CEO. Although Wiedeking opposed until now Ferdinand Piech's plan to take over Porsche, Der Spielgel stated the two families agreed last weekend to move forward with VW's take over plan.

Ferdinand Piech, who is VW's chairman and part owner of Porsche, has pushed for some time now to take over Porsche and reduce its massive debt. The deal the two families supposedly reach includes an estimated 8bn euro transaction. Following this move, Volkswagen would purchase 49.9 percent stake in Porsche AG, and acquire the rest at a later date.

If this will happen, Volkswagen will lead an integrated automotive group with 10 brands, under the leadership of VW's chairman Ferdinand Piech.