Martin Winterkorn is new VW Management Board chairman

The Supervisory Board of Volkswagen has appointed Professor Martin Winterkorn as chairman of the Board of Management with effect from next January 1. The Supervisory Board also resolved that Dr Bernd Pischetsrieder will leave the Board of Management from December 31.

Dr Pischetsrieder will continue to work for the group and will assume functions in the interests of the group. The Supervisory Board will decide later on a successor to Dr Winterkorn in his present function as chairman of the Audi AG Management Board.

Group planning

At its meeting last Friday week, the Supervisory Board also discussed the group's current financial and capital expenditure planning for 2007-2009 in which VW is to invest €24.7 billion in the Automotive Division in the coming three years.

In addition to investments in property, plant and equipment, this amount also includes additions to capitalised development costs and investments in financial assets.

Of the total amount, €17.7 billion is accounted for by investments in property, plant and equipment, of which €10.7 billion will be invested in Germany alone. After a relatively low capex/revenue ratio in recent years, this ratio will be maintained at a competitive long-term level of below six per cent, as in the previous planning round.

At €11.8 billion, the bulk of the group's spending on property, plant and equipment for the Automotive Division will be devoted to modernising and expanding the product range. The focus will be on successor models and new derivatives in almost all vehicle classes, and will enable the Volkswagen Group to continue its new model rollout systematically to ensure even greater market penetration.

With regard to power trains, new generations of petrol engines offering improved performance, fuel consumption and emissions will be introduced, and diesel engines will be switched to common rail technology.

Production capacity for double clutch gearboxes, an area in which the Group continues to offer globally unique technology, will be aligned with the growing demand.

Indian investment

The Supervisory Board also approved the Management Board's plans for an investment project in India. VW will build a production plant in the north of the city of Pune in the state of Maharashtra. Under the current plans, the new plant will employ around 2,500 people and will start production of a small passenger car in the second half of 2009.

India is one of the fastest growing automotive markets worldwide, but high import duties on vehicles mean that any meaningful market presence can only be achieved by establishing domestic production facilities.

VW examined a number of locations in India in detail and chose the Pune region because of its economic environment, good logistics links and sufficiently strongly established supplier structure. The region also offers qualified employees who will ensure that production meets appropriate quality standards.