End of an Era: Wiedeking Out at Porsche

Well this has turned out into a real mess, and quickly. If you haven't been following the Porsche/VW ordeal that's been going on, there's no way I could bring you up to speed on it all. But, I'll try to fill you in on the basics.

Porsche has been attempting to takeover Volkswagen by purchasing all available shares. Unfortunately with the economy like it is, things started to fall apart quickly and Porsche found itself saddled with $12 billion in debt.

The company then sought a lifeline ("bridge loan") from VW in order to stay afloat. Efforts to find money elsewhere from sources like the German government failed and Porsche has found itself in the situation it is right now.

That situation has resulted in the company getting purchased by VW. Porsche is set to become another brand under the VW umbrella. While VW and Porsche have always been closely intertwined, it's a sad thing - saying goodbye to an independent Porsche!

The only person standing in the way of that deal - CEO Wendelin Wiedeking - is now out of the way. That's right, the same CEO that has transformed Porsche to become one of the world's most profitable automakers is no longer going to be with the company.

It's family politics between the rival Porsche and VW ownership families. I wouldn't want to be a part of that mess! Wiedeking has been a staunch advocate for an independent Porsche; it was always his goal to keep it that way

He thought purchasing VW would give Porsche the access to better economies of scale and resources that it needed going forward. How ironic that the very thing that was supposed to help Porsche maintain that independence for years to come is the reason it can no longer be that way.

Porsche is a classic example of a small company overreaching. History is littered with them. It didn't have to be this way. Ambition is good, but too much can ruin you. Regardless, I'm sure Wiedeking has a bright future at another automaker.