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Cornering Kingpin
In a move to help sweep its dire financial situation under the rug, Porsche CEO Wendelin Wiedeking has scolded two company board members for speaking negatively about the company’s financial standing. Porsche is trying to keep its poor financial condition quiet as it seeks more than $2.4 billion in government loans.
Wiedeking penned letters to IG Metall union head Bertold Huber and Volkswagen AG Chairman Ferdinand Piech – both members of Porsche’s board. Huber and Piech received the letters after publicly criticizing Porsche’s financial standing. The exact contents of the letters remains unknown, but the Sueddeutsche Zeitung newspaper claims Wiedeking’s letter to Huber threatened to hold the union head liable if Porsche is denied a government loan. Huber responded by saying Porsche brought the negative publicity on itself by requesting federal aid, according to Automotive News. Piech is a part owner of Porsche. Wiedeking found himself in hot water after racking up $12 billion in debt during the failed takeover of Volkswagen. Porsche currently has a $3.5 billion cash shortfall and could be on some thin ice if its government loan doesn’t come through.
- http://www.leftlanenews/porsche-ceo-scorns-board-members-for-speaking-badly-of-company-finances.html
