Tension grows between Porsche and VW ahead of takeover

Time is running out and tension is growing: the takeover of Volkswagen by Porsche has sparked union anger and possibly raised tempers within both companies. German media reports last week spoke of a possible departure of Porsche boss Wendelin Wiedeking, who could be sacrificed by dealmaker Ferdinand Piech to appease unions. File photo of Volkswagen’s factory in Wolfsburg, Germany. Piech, a co-owner of Porsche and president of the VW supervisory board, was said to be highly irritated by tense relations between Wiedeking, one of the best-paid German bosses, and unions who play a crucial role at VW. German industrial tradition that gives unions an oversight capacity in strategic decisions is firmly anchored in Volkswagen, the biggest European car maker. That has been the case since the end of World War II when unions were first associated with the running of a group that was once a jewel of the former Nazi regime. The voting of a so-called VW Law in 1960, when the maker of the Beetle and Golf was privatised, gave unions more power than in any other German company. But Wiedeking, head of what could be VW’s new owner, does not see things that way. As soon as Porsche began increasing its stake in VW, he dropped a bomb by saying there would be no “sacred cows” at the much bigger car company. Since then Wiedeking has become embroiled in a dispute with IG Metall, which represents 90 percent of VW workers. One of the main reasons concerns…