Porsche Grandson Tapped at Volkswagen

Ferdinand Piech, grandson of the legendary car maker Ferdinand Porsche, has been tentatively chosen to become chairman of Volkswagen AG at the start of next year, Volkswagen said.

Piech is head of Audi, Volkswagen’s sister company.

Volkswagen also said that 12,500 jobs will be phased out through attrition over the next five years to cut costs. About 127,000 people are employed by Volkswagen in Germany. The company has plants in other countries as well.

The VW board said it chose Piech to succeed 65-year-old Carl Hahn, who is retiring after 10 years at the helm. Piech’s appointment is expected to be confirmed when the full board meets April 10.

In a press statement, the company said Piech, 54, was chosen over Daniel Goeudevert, a Frenchman who is on the board of directors.

According to the statement, Piech will be expected to lower production costs so Europe’s largest car maker can become more competitive.

Piech, an Austrian-born engineer, began his career in 1963 at Porsche headquarters in Stuttgart. He also worked for a while as an independent engineer.

Piech joined Audi in 1972. He was elevated to its board chairman 16 years later.

Piech’s grandfather founded the Porsche company and invented the famous Volkswagen “Beetle.”