Ex-Porsche boss invests in engine improver startup: Wendelin Wiedeking returns to the auto industry – as an investor

He has put his money in a pizza restaurant chain, in a custom-made shoe factory, in real estate companies or even in a fashion startup. Wendelin Wiedeking made a big bow to the car industry after his departure Porsche-Chef in July 2009. “I’ll stay out of this,” he said just over a year ago, when he said on the occasion of his 65th birthday on the exhaust gas scandal and the problems of the German car industry.

Now the doctor of mechanical engineering dares to go back a bit to his old terrain – not as a manager, but as a financier and supporter: how Bloomberg reports, Wiedeking is one of the shareholders of the German engine developer startup MWI Micro Wave Ignition AG.

Based in Empfingen in Baden-Württemberg, the company is developing a technology that will make combustion engines more economical and lower emissions. In the MWI engines, the fuel-air mixture in the cylinders is ignited with microwaves rather than spark plugs. This ensures a lower combustion temperature. This can reduce consumption by up to 30 percent and reduce emissions by up to 80 percent, claims MWI.

The microwave ignition is still not finished ready for production. And some researchers doubt that the new ignition system will work smoothly when a vehicle accelerates. But MWI has already commissioned the Australian investment bank Macquarie Capital to seek investors and international partners to publicize the new engine. According to Bloomberg, MWI is to hold initial talks with car manufacturers from South Korea and China.

Wiedeking, together with other private investors, should own about 20 percent of MWI,reports Bloomberg – and also use his good name for the startup. According to Bloomberg, Wiedeking is quoted in an MWI document as saying, “I am convinced that MWI is a disruptive innovation with huge market potential.”

Such words should make an impression on potential investors. Because Wiedeking’s merit is to have turned Porsche from bankruptcy candidate to winning machine. When he became Porsche boss at the beginning of the 1990s, the company was in deep crisis. Wiedeking dismantled jobs, changed production processes and expanded the model range early by sporty SUVs. The Porsche share price rose under Wiedeking 22 times, he was by far the best-paid salaried manager in Germany.

Entrepreneur Wiedeking is involved in over 20 companies

Wiedeking, however, coped with the daring acquisition attempt of the much larger Volkswagen Group. Porsche amassed a huge debt mountain, Wiedeking had to go in July 2009. The accusation that it also manipulated stock market prices was Wiedeking acquitted in March 2016,

Wiedeking had not held a chief position after his expulsion from Porsche. Instead of being an employee, the native of Westphalia has since then preferred to invest his fortunes earned in Porsche in a variety of ventures. Just over a year ago, he said he was involved in around 20 companies. This includes, for example, the pizza chain tialini, which he built from 2012 and which had to fight with some start-up difficulties. Wiedeking holds shares in the holiday home rental e-domizil and on the e-hoi cruise platform.

Wiedeking converted his 30-percent share in the custom shoe manufacturer Heinrich Dinkelacker into a stake in leather shoe retailer Shoepassion when the Berlin startup took over the Swabian shoe factory. Wiedeking recently invested in the fashion startup Inspora. On the other hand Wiedeking got out of Karstadt-owner Signa: he sold his shares in a Signa real estate subsidiary in the spring of 2017,

Wiedeking strives for a big return in the automotive industry with his MWI investment – but a little rapprochement. As reported by manager magazin at the end of July, Wiedeking also works for Porsche again: he is a member of the board of trustees of the Ferry Porsche Foundation, which aims to support educational and social projects.

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