Strings attached

3 May 2006 By Nina Koeppen

Pischetsrieder will stay in the driver s seat until 2012. That s good news. It ends months of fights, and management can return to business. The bad news is that he made further concessions to the unions over job cuts. The 2008 performance targets look increasingly out of reach.

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Volkswagen's supervisory board unanimously decided to extend the contract of Bernd Pischetsrieder, the carmaker's chief executive, until April 2012.

But the head of VW's workers council, Bernd Osterloh, indicated that the workers' backing for Pischetsrieder will, in return, mean management concessions over job security in Germany.

With this agreement we have, in principle, reached this goal as well as a commitment from management on job and plant guarantees, he was quoted as saying.

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