VW has set a new expansion goal as steady volume gains have already helped the automaker see its current target for 2018 reachable.
“We definitely need a new (growth) strategy,” Bernd Osterloh, head of VW’s works council, told reporters in Wolfsburg.
The German automaker’s current expansion plan, drawn up by CEO Martin Winterkorn in 2007 when he took office, presents steps for the company on how to become the world’s biggest automaker by 2018, reaching annual sales of 10 million vehicles that year. In 2012 VW sold a record 9.1 million units, increasing global deliveries by 11.2%. This means that the company will reach sales of 10 million vehicles as soon as this year.
The new growth goals to expand until 2022 may lead executives to diminish managers’ pay at the German group as compensation guidelines for VW’s executives drew public criticism after Winterkorn’s pay nearly doubled in 2011. The supervisory board will take a decision on limiting future executive compensations increases in late February.
In 2011 Winterkorn earned 17.5 million euro in fixed salary, profit incentives and bonuses, from 9.3 million euro in 2010, becoming the highest paid CEO among Germany’s top 30 companies that are listed on the DAX index.
“Winterkorn, with his salary, is being made the scapegoat for this debate driven by envy,” said Osterloh. “The management board has come to the conclusion that this can’t be fought out over the long term.”
by Ana Cezara Savin
) - Friday, February 1st, 2013 - filed under News
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