By Ilona Wissenbach and Andreas Cremer
STUTTGART/BERLIN, Germany (Reuters) - A top level Volkswagen
The rift became public last week when Chairman Ferdinand Piech said in a magazine interview he had distanced himself from CEO Martin Winterkorn who has run VW since 2007.
Sources have told Reuters that Piech had aired criticism at supervisory board meetings over the past five months of the company's performance under his former protégé Winterkorn, particularly in the United States, where the VW brand has fallen far short of sales goals.
Two sources close to VW and sportscar maker Porsche said Thursday's meeting of the supervisory board steering committee, which effectively sets the agenda for the full supervisory board that has the power to appoint and dismiss executives, is taking place in Salzburg, where Piech lives.
Winterkorn is taking part in the gathering which started at 10 a.m. EDT, one of the sources said.
Two people close to the labor side of VW's supervisory board said the works council still supported Winterkorn despite the intervention of Piech, who has in the past ended executives' careers with a single remark.
The works council's backing for an extension of Winterkorn's contract, due to run to Dec. 31, 2016, hasn't changed, one source said.
Piech, 77, is the patriarch of Volkswagen's ruling clan. The family, which includes Piech's cousin Wolfgang Porsche, owns 50.7 percent of voting rights in the company. Strategic decisions also need support from unions occupying half of the 20 supervisory board seats.
The steering committee that will meet on Thursday comprises six members: Bernd Osterloh, VW works council chief, and two other labor representatives, Piech, Porsche and Lower Saxony Prime Minister Stephan Weil.
The works council, the state of Lower Saxony and VW all declined comment.
VW's stock market value would increase if Winterkorn and Piech quit their jobs, a survey of more than 50 predominantly VW investors by advisory firm Evercore ISI showed, on the basis it would give VW the chance of a clean break and unlock greater earnings potential at the twelve-brand group.
Almost 65 percent of investors believe a change at the CEO level would be good for VW shares, which would equally benefit if VW had a new chairman, a view supported by almost 80 percent of respondents, according to Evercore ISI.
Half of investors questioned believe VW will have a new CEO within the next six to 18 months, the survey showed.
(Additional reporting by Jan Schwartz; Writing by Georgina Prodhan; Editing by Maria Sheahan and David Holmes)
