Piech Averts Family Showdown Over VW Leadership

Former Volkswagen AG Chairman Ferdinand Piech avoided a public confrontation with his cousin Wolfgang Porsche earlier today by opting not to attend a meeting of Porsche SE, the holding company that controls 51% of VW's shares.

Wolfgang Porsche is Porsche SE's supervisory board chairman. Piech, who was forced to resign as VW chairman on April 25 after failing to remove CEO Martin Winterkorn, remains on the holding company's board. He represents his family's 13% stake in Porsche SE.

The Piech-Porsche families pledged today to maintain their investment and ties to VW. Media reports say Piech had threatened to sell his stake in the holding company unless VW agreed to replace Winterkorn.