Here is the entire story about the super efficicient Volkswagen again in
text format. This is the way I put newspaper articles on newgroups and
listservers. I simply copied and pasted the article, after having used
Bill's trick to repair a broken URL:

http://www.cleveland.com/autos/plaindealer/index.ssf?/xml/story.ssf/html_sta
ndard.xsl?/base/business/10189496011215120.xml.


Han
Historian of Dutch Metrication, Nijmegen, The Netherlands

Autos News


New driver steers VW on difficult new course

04/16/02

David McHugh
Associated Press

Frankfurt, Germany

- On his last day as Volkswagen chief, Ferdinand Piech drove to the
company's shareholder meeting yesterday in an experimental fuel-saving car
he envisioned and prodded into reality.


The 210 km (130-mile) trip from VW headquarters in Wolfsburg to Hamburg
marked the end of a nine-year run that shook up Europe's largest automaker
and left successor Bernd Pischetsrieder with a tough act to follow.
When Piech took over in 1993, the company was losing money. Last year,
profit was $2.59 billion and the stock is at $51.09, an increase of 9�
times, including a stock split.
During yesterday's test drive of the 1-Liter Auto, designed to get 100
kilometers per liter of fuel, or 239 miles per gallon, Pischetsrieder rode
in the back seat.
As of today, he's in the driver's seat, moving into the precarious position
of running a company that is thriving but facing strategic issues critical
to maintaining its market position.
Last month, Pischetsrieder announced that slowing sales would depress
profits in the first three months of this year, although he didn't give a
figure.
"They're facing the same problem everyone else is," said David Cole,
director of the Center for Automotive Research in the United States,
pointing to the worldwide excess of production capacity over sales.
"The competitive environment is going to continue to be a challenge."
Piech is a member of automotive nobility and ran Volkswagen with an
autocratic flair.
His grandfather, Ferdinand Porsche, was an early 20th-century auto pioneer
and helped plan the factory that later made Beetles.
His father, Anton Piech, ran Volkswagen during World War II, when it built
military vehicles, and his uncle, Ferry Porsche, founded the high-end
sports-car maker.
As chief executive, Piech rammed his ideas through even against resistance
within his own company.
He slashed the number of vehicle platforms from 16 to four, cutting costs
through extensive sharing of parts among models.
He ignored doubters and re-created the 1960s Beetle as the New Beetle, a hit
in the key North American market.
He expanded the company's high-end brands through the 1998 acquisitions of
Rolls-Royce, Lamborghini and Bugatti, making one massive blunder when BMW
bought the rights to the Rolls-Royce name out from under him for only $60
million.
He also hired Pischetsrieder, dumped as chief executive of BMW in 1999 after
a failed merger with Britain's Rover. BMW sank $4.1 billion into the company
but couldn't turn it around and sold it for a nominal price.
Style is probably one thing that will change under the new boss. Many view
Pischetsrieder as more of a team builder than the my-way-or-the-highway
Piech, "a transfer to someone more like a coach than a king," as analyst
Cole put it.
Many analysts also think Pischetsrieder, though a highly experienced
manufacturing engineer, will put new emphasis on marketing.
One reason is the challenge created by Piech's achievement in combining
platforms.
"European consumers are well aware they can go buy a Skoda Fabia and
actually they get a VW Golf," said analyst Graeme Maxton, a principal in the
Autopolis analytical firm. "One part of the group is cannibalizing sales
from the other part."
The answer, analysts say, is in distinguishing models more clearly, both in
how they're made and styled and in how they're marketed, while still sharing
as many parts as possible.
If Pischetsrieder wants advice, he won't have far to look.
Piech is moving over to chair the company's oversight board, a powerful
panel in German industry that reviews key decisions and appoints the
management team.
"My sense is, he's going to still be there in the background," said analyst
Maxton. "Not actually in charge, but pulling the strings - if he needs to."

� 2002 The Plain Dealer. Used with permission

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