VW Chief Plans to Hang On to Post with an Eye Towards Reviving VW Brand

Washington DC March 8, 2006; The AIADA newsletter reported that Volkswagen's chief Bernd Pischetsrieder announced his plans to take the VW brand into the future – beyond his contract's expiration in 2007 -- with lower costs and exciting vehicles yesterday in an annual news conference, according to BusinessWeek.

Pischetsrieder defended his track record at VW and told of his plans to keep his position after a public denunciation by the chairman of Volkwagen's advisory board, Ferdinand K. Piëch. "I would like to lead our company to success, together with my colleagues," Pischetsrieder said after laying out his strategic plan for the largest European automaker. He did, however, acknowledge that he would not be able to maintain his position if he lost the support of the unionized employees, which have half of the 20 seats on the VW board.

According to The New York Times, this is a grave concern, as employees have been "rattled" by Pischetsrieder's cost-cutting plan that could cut as many as 20,000 jobs in German factories over the next three years.

Insiders say, however, much of Pischetsrieder's – and VW's -- problems are personal: Is Mr. Piëch, a former VW executive, retaliating against Pischetsrieder for unraveling the vision set forth by Piëch? If Piëch is aiming to oust Pischetsrieder, his successor is unclear, but the likely candidates are: Wendelin Wiedeking, the chairman of Porsche; Martin Winterkorn, the chairman of Volkswagen's Audi brand; or Wolfgang Bernhard, the chief of the Volkswagen brand.