Blog: DC’s Bernhard for VW?
Dave Leggett | 20 July 2004
We’ve just been discussing this story here. We’ve not heard anything more concrete than what has already been speculated in the media – and Volkswagen has denied that it is in talks with DC’s apparently dead-in-the-water executive Wolfgang Bernhard. But a note I’ve received from Goldman Sachs’ European Autos Team points out that such a move would send out the right (cost-cutting) message at Volkswagen. The GS people are at pains to stress that they have no specific information on Bernhard moving to VW. But they are typically direct in their analysis:
‘Mr Bernhard was apparently squeezed out of Mercedes for being too bold in his cost-cutting demands. Mercedes makes nearly 6% margins (although this could fall in 2005 as currency hedges expire) whereas VW's margins are 0%, so we can only guess at the measures Mr Bernhard might consider necessary.’
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