UPDATE: Piech Forced Out as VW’s Chairman

Volkswagen AG Chairman Ferdinand Piech resigned on Saturday, ending a crisis he sparked two weeks ago by publicly criticizing his expected successor, CEO Martin Winterkorn.

The supervisory board's six-member executive committee, of which Piech was a member, voted 5-1 last week to support Winterkorn. Piech agreed to go along with the majority. But on Saturday the committee demanded he leave after learning Piech secretly continued to plot to replace Winterkorn with Matthias Mueller, CEO of VW's Porsche unit.

In a statement, the board said it requested Piech's resignation because "the mutual trust necessary for successful cooperation no longer exists."

The committee says Piech has resigned from all roles at VW. His wife Ursula, who joined the supervisory board in 2012, relinquished that post.

VW's chairmanship will be held temporarily by board deputy chairman and union representative Berthold Huber. He will chair the full supervisory board meeting on May 4 and VW shareholder meeting on May 5.

Piech's departure clears the way for Winterkorn, whose contract as CEO is up for renewal next year, to assume the chairmanship now. Unclear is whether Winterkorn would be succeeded by Mueller. Analysts consider Mueller a good choice, but Piech's endorsement may now be a liability.

Piech ruled VW as CEO and then chairman with a heavy hand for more than 20 years. He helped transform the company into a global powerhouse second in sales only to Toyota Motor Corp. But he also was unsuccessful in reviving VW in the American market, where it remains a weak player.