GERMANY: Osterloh to fight Porsche domination
The head of Volkswagen's works council, Bernd Osterloh, has said he will campaign against a domination and profit transfer agreement from Porsche.
Following Porsche's announcement that it had gained a majority shareholding in Volkswagen this week, Osterloh told German press agency dpa jobs would be at risk if Porsche took complete control.
"As employees it is important to us that decisions about the Volkswagen group continue to be made in Wolfsburg."
Osterloh said he was particularly concerned that major investment and new model related decisions were taken by the supervisory board of Volkswagen.
Porsche increased its holding to 50.76% of all ordinary voting shares earlier this week. The company has said it would increase its shareholding further to 75% during 2009 and would then seek a domination and profit transfer agreement.
This would mean that important decisions regarding the company would no longer be made by the Volkswagen supervisory board but by the Porsche Holding board.
Porsche could then appoint board members, decide on new models and which plants would get those models. It would also receive all the profits.
"If Porsche got a domination and profit transfer agreement then all important decisions would in the future be made in Zuffenhausen," said Osterloh.
He added that the relationship between his works council and Porsche management had improved in the last few weeks and that the parties are now working together constructively.
"From our side we want this to continue," he said.
Osterloh said Porsche majority control did not change the current balance of power.
"Porsche had a majority at the last annual general meeting and still has a majority."