Piech-Winterkorn Rift Moves to Diplomacy Stage

Volkswagen AG Chairman Ferdinand Piech's effort to derail CEO Martin Winterkorn's career will move behind closed doors for a "diplomatic" solution, Reuters reports.

Winterkorn, a long-time Piech prot g , was widely expected to succeed Piech in 2017. But Piech torpedoed that notion last Friday by telling Der Spiegel he had distanced himself from Winterkorn. Now, Reuters says, even Winterkorn supporters predict he will be replaced.

Piech reportedly will meet with his cousin Wolfgang Porsche and other family members this week to discuss his misgivings. The Piech-Porsche families control a majority of VW voting rights.

Sources tell Reuters that Piech has been criticizing VW's performance, especially in the U.S., during recent supervisory board meetings. The news service notes that Piech has ended the careers of several high-level executives at the company with a few strategically chosen words.