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Ed Wallace

The Epilogue to Capitalism

Once in a blue moon I’m asked to comment on a problematical automotive subject. In early 2005 it was in Detroit with the executives running GM discussing ways to improve their business. That day I also warned GM’s top executives that if their sales fell below 25 percent of the total market, then the business media would start writing non-stop that GM would likely end up in bankruptcy. And that would become a self-fulfilling prophecy.

Ed Wallace

Volkswagen’s Game of Thrones Pt. 3

It’s when they’re facing the greatest financial peril that the two Porsche family clans seem to get along best, and 1993 was just such a time. The year did not start well for the Volkswagen Group; massive losses at Porsche dictated a new CEO, Wendelin Wiedeking, while Ferdinand Piech would take the reins at the VW Group. Things were so bad that Piech quickly instituted huge pay cuts and three-day workweeks just to keep his VW workforce intact. He stole a top executive from GM to fill in a weak spot over at Audi; and now he’d set his sights on the man he wanted beside him while he remade Volkswagen into a worldwide automotive powerhouse.

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