After a two-week leadership dispute, less drama is expected at tomorrow’s meeting of Volkswagen’s shareholders. There is still plenty for shareholders to think about, though, as the car maker reveals weaknesses alongside record figures.
The public contest started when supervisory board chairman Ferdinand Piëch withdrew his support from chief executive Martin Winterkorn.
It was resolved last week when Mr. Piëch resigned from the supervisory board together with his wife Ursula; but conflict continues as Mr. Piëch has contested the appointment of two new appointees to the non-executive board, preferring his own candidates.
These topics will likely see plenty of discussion at tomorrow’s meeting, perhaps because the car company’s figures present less cause for concern.
Nonetheless, alongside record sales and profit, VW still has some serious weaknesses from low margins to slow sales in the United States.
Last year, for the first time, VW delivered more than 10 million vehicles and reported more than €200 billion, or $224 billion, in sales. Operating profit rose by 9 percent to reach a new record high of €12.7 billion, while net profit increased by 20 percent to €11 billion. The company’s dividend is also expected to rise by a fifth to €4.80 per share of common stock and €4.86 for preferred shares.
The Group’s consolidated financial statement also reveals problems.