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Yannis · 04-21-2006, 04:11 PM

VW board happy with Pischetsrieder

Bernd Pischetsrieder looks set for a renewed contract as chief executive of Volkswagen after his supervisory board chairman explicitly backed him and the German carmaker's management.

Ferdinand Piëch, VW's chairman, who sparked an intense debate two months ago on the direction of the carmaker after describing Mr Pischetsrieder's future as "an open issue", on Thursday said the supervisory board was "very satisfied with management".

Asked whether Mr Pischetsrieder, whose contract expires in April 2007 and who has said he wants to carry on, would be offered a new contract, Mr Piëch said: "That is my assumption. From my viewpoint, that is how I see it today."

Mr Pischetsrieder's contract will be discussed at a board meeting on May 2, the day before what could be a fiery annual meeting for VW.

Mr Piëch's comments came as VW's supervisory board discussed at an extraordinary meeting a restructuring plan under which up to 20,000 jobs could be cut.

Two months after the plan was announced, and a year after its necessity was acknowledged, the board authorised management to begin negotiations with the IG Metall engineering union.

The discussions threaten to be long and hard-fought as VW tries to introduce measures such as a 22 per cent increase in working hours for no extra pay and the closure of some components operations.

Stephen Cheetham, analyst at Sanford Bernstein, thought it was "unlikely" that VW would meet its self-imposed deadline of wrapping up the talks before the summer break: "The negotiations with unions are likely to be messy and VW faces paralysis for several months."

Good first-quarter results next week could also slow the perceived need for restructuring, investors fear.

Plans to expand in Russia through a new assembly plant near Moscow were approved by the board, despite initial opposition from labour representatives, who make up half the members of the board.

Mr Pischetsrieder also denied that VW had plans to close its Brussels factory, echoing similar comments by Guy Verhofstadt, Belgium's prime minister.

The board meeting came as two of Germany's largest and most influential investment funds, DWS and Deka, tabled motions for the annual meeting criticising Mr Piëch.

The funds, among VW's biggest shareholders, want to vote individually on the approval of supervisory board members.

This is to express their dismay at recent events from sex and bribery scandals to opposition to Mr Pischetsrieder – all of which they, in part, blame on Mr Piëch.

Source

04-21-2006, 04:11 PM	#1 (permalink)
Yannis Philosopher Join Date: Sep 2005 Posts: 7,198 My Mood: Thanks: 1,243 Thanked 1,231 Times in 703 Posts	VW board happy with Pischetsrieder. VW board happy with Pischetsrieder Bernd Pischetsrieder looks set for a renewed contract as chief executive of Volkswagen after his supervisory board chairman explicitly backed him and the German carmaker's management. Ferdinand Piëch, VW's chairman, who sparked an intense debate two months ago on the direction of the carmaker after describing Mr Pischetsrieder's future as "an open issue", on Thursday said the supervisory board was "very satisfied with management". Asked whether Mr Pischetsrieder, whose contract expires in April 2007 and who has said he wants to carry on, would be offered a new contract, Mr Piëch said: "That is my assumption. From my viewpoint, that is how I see it today." Mr Pischetsrieder's contract will be discussed at a board meeting on May 2, the day before what could be a fiery annual meeting for VW. Mr Piëch's comments came as VW's supervisory board discussed at an extraordinary meeting a restructuring plan under which up to 20,000 jobs could be cut. Two months after the plan was announced, and a year after its necessity was acknowledged, the board authorised management to begin negotiations with the IG Metall engineering union. The discussions threaten to be long and hard-fought as VW tries to introduce measures such as a 22 per cent increase in working hours for no extra pay and the closure of some components operations. Stephen Cheetham, analyst at Sanford Bernstein, thought it was "unlikely" that VW would meet its self-imposed deadline of wrapping up the talks before the summer break: "The negotiations with unions are likely to be messy and VW faces paralysis for several months." Good first-quarter results next week could also slow the perceived need for restructuring, investors fear. Plans to expand in Russia through a new assembly plant near Moscow were approved by the board, despite initial opposition from labour representatives, who make up half the members of the board. Mr Pischetsrieder also denied that VW had plans to close its Brussels factory, echoing similar comments by Guy Verhofstadt, Belgium's prime minister. The board meeting came as two of Germany's largest and most influential investment funds, DWS and Deka, tabled motions for the annual meeting criticising Mr Piëch. The funds, among VW's biggest shareholders, want to vote individually on the approval of supervisory board members. This is to express their dismay at recent events from sex and bribery scandals to opposition to Mr Pischetsrieder – all of which they, in part, blame on Mr Piëch. Source