Wednesday, December 06, 2006

VW brand boss Bernhard could return to Chrysler

Discussions center on canceling his contract

By HENNING KROGH | AUTOMOBILWOCHE

AutoWeek | Published 12/06/06, 9:04 am et



Wolfsburg. The uncertainty over Wolfgang Bernhard's future at Volkswagen is blocking incoming VW group Chairman Martin Winterkorn's personnel reshuffle.

"Bernhard is seething," said a confidant of Winterkorn.

"It's clear that Bernhard will leave us," said the insider who works at VW Wolfsburg headquarters.

Bernhard was taken by surprise by VW supervisory board Chairman Ferdinand Piech's success in forcing current VW group Chairman Bernd Pischetsrieder to resign his post at the end of the year.

Internal discussions now center on canceling Bernhard's contract, said the insider.

Bernhard wants a clause in his contract that prevents him from working for a rival for up to two years to be eased, as well as a substantial pay off and pension payments.

Bernhard has VW product plans

"Bernhard would be a highly dangerous man for VW until at least 2012," said a company insider. "He has internalized details of all the product and manufacturing strategies."

VW wants a quick decision over Bernhard's future. Otherwise, a planned reshuffle of top management posts could be considerably delayed.

Winterkorn plans to appoint Audi production boss Jochem Heizmann to the new position of VW group production chief.

Juergen Lunemann would take Heizmann's post at Audi. Lunemann is manager of Audi's Neckarsulm plant in Germany.

Winterkorn wants Audi technology chief Ulrich Hackenberg to become head of development for the VW group. Michael Dick, who heads Audi's new model development, would take Hackenberg's post.

DaimlerChrysler rumors grow stronger

Rumors that Bernhard will return to DaimlerChrysler are getting stronger.

Bernhard recently met with DaimlerChrysler CEO Dieter Zetsche to sound out the possibility of returning to his former employer, a source said.

DaimlerChrysler's German works council would not accept Bernhard as head of the Mercedes Car Group, a post he was due to get in 2004. Zetsche is considering with U.S. managers whether Chrysler group CEO Tom LaSorda should continue in his post following recent heavy losses at the group. Bernhard could succeed LaSorda.

"Bernhard would be welcomed back in the U.S.A.," said one of his confidants.

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