Saint Bernhard

7 October 2004 By Marianne Brun-Rovet

Former Daimler executive Wolfgang Bernhard specialises in the sort of tough love Carlos Ghosn practiced at Nissan. If he s given a free rein, he could make an impact at the German carmaker. But the halfhearted nature of his appointment raises doubts.

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Volkswagen has hired Wolfgang Bernhard to join its management board and later head the troubled German carmaker's VWbrand division.

The former DaimlerChrysler executive was responsible for radical cost and job cuts at Daimler's US unit Chrysler. He was in line to head Daimler's MercedesBenz luxury car unit before being forced out in July.

Bernhard will join VW's board in January and will take charge of the VWbrands division – which includes the Skoda, Bentley and Bugatti brands as well as VW – by January 2006.

The announcement came as VW engaged in another round of wage negotiations with unions. Workers representatives have demanded a 4% wage increase and job guarantees while VW has called for a twoyear wage freeze in its drive to cut costs. It has threatened to shed 30,000 jobs if workers don't agree to concessions.

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