Scania CEO to join VW Board image

Scania AB CEO Leif Oestling will soon join the board of its controlling shareholder, German automaker Volkswagen, people familiar with the matter said.

Oestling, who will leave Scania after 40 years, will replace trucks chief Jochem Heizmann, said the people, who declined to be identified because the supervisory board hasn’t signed off on the moves.
Heizmann would then become responsible for Volkswagen’s projects to ramp up production capacity across the globe and build new plants.

A cornerstone of the Wolfsburg-based firm’s future strategy is improving cooperation between Scania and Volkswagen’s second heavy-truck unit MAN SE (MAN.XE) to reap large cost savings.

VW’s 20-member supervisory board will gather on Friday to approve the changes, the people said. A VW spokesman declined to comment.

Germany’s VW has pledged to become the world’s biggest and most profitable carmaker by 2018, aiming to overtake General Motors (GM) and Toyota Motor by boosting auto deliveries across its multi-brand group to 10 million annually. Four-month sales this year rose 8.6 per cent to 2.89 million vehicles.

Employing some 37,500 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles.