| In the news: Volkswagen AG Chairman Ferdinand | | | | control MAN the possibility of pursuing a merger with |
| Piech was reported to be planning of joining MAN | | | | Scania is high. |
| AG's supervisory board. This will enable Europe's | | | | There are two aspiring candidates who are seen to |
| largest automaker to push through with their plan to | | | | replace Joachim Milberg -- Bayerische Motoren Werke |
| create a three-way combination with Swedish rival | | | | AG's supervisory board chairman, and Herbert Demel, |
| Scania AB--that is according to sources who are | | | | chief executive of Magna Powertrain AG. Andreas |
| familiar with the situation. | | | | Meurer, Volkswagen spokesman and Andreas |
| MAN has also announced that Piech and Rupert | | | | Lampersbach spokesman of MAN refrain from giving |
| Stadler chief executive officer of Volkswagen's Audi | | | | their comments on the matter. |
| luxury unit are going to be the candidates for board | | | | It is no secret that Piech who is at present the CEO of |
| seats at the annual general meeting which will be held | | | | Volkswagen has also held the same role in Scania AB |
| on May 10. | | | | from May 2000 to April 2003. Europe's largest |
| It should be noted that Volkswagen---Europe's largest | | | | automaker, Volkswagen is the largest shareholder of |
| automaker and maker of quality Volkswagen turn | | | | both Scania and MAN. Piech is also occupying a seat |
| signal--- has increased its stakes at MAN to 29.9 | | | | on the board of Porsche AG which is controlled by |
| percent from 20 percent which increases its power to | | | | none other than Piech and Porsche families. Porsche |
| influence the merger of its own truck division with | | | | which has the highest profit margins of any carmaker |
| Scania and MAN. And if ever Volkswagen succeeds | | | | in the world owns 27.4 percent of Volkswagen which |
| with its plan in merging the two truckmaker with its | | | | strengthens Piech position in the company. |
| own it will become Europe's largest truckmaker | | | | Piech was also the one responsible for ousting CEO |
| surpassing DaimlerChrysler AG and Volvo AB. | | | | Bernd Pischetsrieder and replaced him with his favorite |
| According to Stephen Pope, head of equity research | | | | protégé Martin Winterkorn who was at that |
| at Cantor Fitzgerald in London, "this gives a clear signal | | | | time the head of Audi which is one of Volkswagen's |
| that Volkswagen wants to wield greater influence | | | | most profitable units. |
| over this business and extend its reach within the | | | | It was last Oct. 4 when Volkswagen announced that it |
| commercial vehicle industry. Volkswagen also clearly | | | | has purchased 15.1 percent of MAN's shares as a |
| wants to dictate the strategy of any merger." It was | | | | "strategic move". The company has announced a |
| last September when MAN has made a hostile bid for | | | | month later that it has increased its holdings to around |
| Soedertaelje, Sweden-based Scania but dropped the | | | | 20 percent and was given the privilege to increase its |
| offer on January this year. But with Volkswagen to | | | | stake to as much as 29.9 percent. |