Yannis

News this week of the new TT may have edged out attention to another story circulating around the industry. From Spiegel, the NY Times and Forbes amongst others, we're seeing reports of the potentiality that Volkswagen AG will make a decision in a supervisory board meeting planned for April 19 and 20 on whether or not to renew the contract of Volkswagen AG boss Bernd Pischetsrieder.

Speculation around the industry points to Audi boss Prof. Dr. Martin Winterkorn as one of the top choices for replacement if this were to happen. Winterkorn has shown his prowess at the helm of Audi, the Volkswagen Group's current cash cow. Winterkorn is highly respected by his subordinates at Audi, a stickler for detail and reportedly very open to tailoring products to markets outside of Germany for their particular needs, leaving significant power in the hands of those in other countries when it comes to detailing. The Q7 is a great example of this, with the US a major factor in its developement as the States will likely be its largest market.

Regarding Winterkorn, Pischetsrieder did comment to Spiegel, "The question of whether or not Winterkorn will replace me is something we are both going to be stuck with until we turn 65."

If Winterkorn did move on up the chain of command, where would this leave Audi? Public speculation of such an eventuality has not yet begun, though we'll report on it if we hear anything.

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Mirage77

Winterkorn should beat VW back to shape, and meanwhile managing Audi as a subsidiary.

Brookside

The problems at VW are more serious than replacing one good
manager with another...in a way that's the worst possible solution that really doesn't address or solve the real issues that are at stake.

If I could I would attempt to resolve the issue of VW's governance- primarily their unmanageable board of directors who have far too much input in the daily running of VW.
I would rework some of the burdens placed on VW by antiquated contracts with their German work force..not to be a union buster, but to face a new reality in the global market and come up with fair and ecquitable solutions for all.

It seems that VW wants to put a new face over their problems- problems that are bigger than simply a shift in top-management....in a sense VW seems bent on making Pichetsreider the fall-guy for questionable decisions that go deeper into the labyrinth of their corporatate structure than the actions of one person.

Mirage77

If that's the case, isn't it a simple replacement of the BOD with fresh new blood? Hence or otherwise, they should change the powers that the BOD wield.

I think because the workers are so used to these favourable contracts, they will not settle for anything less.

In a sense, you could say Pichetsreider was brought in to solve the ills plaguing VW... But he didn't ironed it all out, did he? Why did he not attempt to tweak the system of coporate governance in VW? If he was capable enough, there would be no reason to switch him for Winterkorn.

Deutsch

I would hate to see Winterkorn put under the pressure cooker by the VW board and the Workers Union, that's what got Pischetsrieder in trouble. We'll see though, he's done a magnificent job w/ Audi.

Brookside

Winterkorn's done a great job, IMHO, because VW has largely focused on Volkswagen in the last couple of years and left Winterkorn pretty much free to get the job done at Audi.
Pichetsreider never had much of a chance given that he was never given a free hand by VW's BOD especially given the continuing influence of Ferdinand Piech.
The "glass factory" in Dresden...the over-budget Phaeton- the lowering of standards of quality by VW's suppliers...particularly the electrical components...the absolutely horrid mechanical problems that plague the previous series Jetta...all of these were either initiated by Piech or done on his watch....
The unrest at VW has been going on for much too long to blame it all on one person. But if I were to heap scorn on a single individual it wouldn't be P-reider.
Good Luck to Winterkorn...he'll need it.

siko

Pischetsrieder's job has been on the line for a while... not much of a surprise to see a replacement.

Imhotep Evil

Yeah, I kind of think so too.
VW's problems are deep, and I don't see any solution, not until Piech is completly out/dead, way of doing things with the union are changed, and the new, easier and cheaper to build and sell Golf VI
comes along.
The Golf V, Phaeton and even the Tuareg and Passat would have killed VW had it not been for Audi.

Yannis

Passat is the new sales leader in it's class and Golf still remains the best seller in Europe.

VW's main problem is that German labour costs are the most expensive in the world. While that is not so bad for luxury German marques like BMW or Audi , who can price their models at high prices, it's very bad for VW who has to be competitive with car makers like PSA, Ford and Opel/GM.

Imhotep Evil

Labour costs aren't the only problems for VW.
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As if Piech and his big ego would not be enough.

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