July 9 (Bloomberg) -- Porsche SE Chief Executive Officer Wendelin Wiedeking is obstructing a possible merger with Volkswagen AG, VW union chief Bernd Osterloh said, calling on the sports-car maker’s CEO “to end his ego trip.”

“Wiedeking has not yet realized that he’s part of the problem and not part of the solution,” Osterloh said in an interview with Wolfsburger Allgemeine Zeitung. “Together, one could do a whole lot of more things if Wiedeking would end his ego trip at last.” Gunnar Kilian, a spokesman for Volkswagen’s works council, confirmed Osterloh’s remarks by telephone.

Porsche, which started acquiring Volkswagen shares in 2005, has gone from the potential buyer of VW to the one struggling to remain independent in the eight-month-long battle between the German carmakers. Saddled with more than 9 billion euros ($12.6 billion) of debt, Stuttgart-based Porsche is in talks with Qatar about selling a stake as well as some options that can be converted into Wolfsburg-based Volkswagen’s stock.

Osterloh, who attended a Volkswagen event in Sardinia in May where VW Chairman Ferdinand Piech openly criticized Wiedeking, said the dispute with Porsche “can’t go on forever because otherwise, Volkswagen will be damaged too.”

Wiedeking, with the aid of Chief Financial Officer Holger Haerter, backed the swoop for Volkswagen with options that allowed Porsche to profit from increases in VW’s share price. Porsche’s net income 5.6 billion euros outstripped sales of 3.04 billion euros in the six months ended Jan. 31.

Osterloh dismissed the financial dealings, saying “optimal products and not financial-market speculation” are key to a carmaker’s long-term success.

“What’s clear is that we have absolutely no more trust in the current board of Porsche,” Osterloh said. “But Wiedeking isn’t running our company, and he never will.”

Porsche spokesman Frank Scholtys wasn’t immediately available when contacted by telephone.

To contact the reporter on this story: Andreas Cremer in Berlin at acremer@bloomberg.net

Last Updated: July 9, 2009 11:51 EDT