VW And Peugeot Name New Chiefs

Volkswagen AG and PSA Peugeot Citroen, two ofThe selection and succession of the new chiefs is
the largest automakers in Europe, named new chiefanchored on the auto industry's tight competition. The
executives to lead them fight the automakers combat.Big 3 automakers of Japan namely Toyota, Honda
Critics in the industry are saying that an ideal leaderand Nissan, are launching new diesel vehicles to amass
can help the automakers find ways to patch things upa bigger slice of the automotive market. As a fact,
and eventually take over the scene.diesel models account for 50 percent of the car sales
Toyota Motor Corp. and Honda Motor Corp. arein Europe.
considered threats in the industry. They surge andToyota, as what the auto reports are saying, is
conquer a healthy slice of automotive market. Theenjoying a prominent standing in the industry. On the
share gets bigger and better moreover; it is high timeother hand, auto parts Honda as well as parts for
for other automakers to aim high and make their planNissan need considerable modifications to achieve
a reality.what Toyota is enjoying these days.
Volkswagen named Martin Winterkorn, formerly theVW and Peugeot are cutting a total of 30,000 jobs to
head of the Audi luxury car unit, as the new head oflimit production expenses and drop excess capacity.
VW's most profitable division. Winterkorn is set toCritics added that this crucial phase in the life of the
replace Bernd Pischetsrieder, who will be steppingmentioned automakers must not compromise the
down on Dec. 31.quality of their products. Car parts for Volkswagen
"When Pischetsrieder's contract came up for renewaland Peugeot are undergoing rigorous test and
in May, there was a feeling that there were a lot ofenhancements to bring about state-of-the-art vehicles.
camps, including the works council backed by Piech,"The auto world is highly unstable right now,'' said David
that were trying to undermine him," said Mark Fulthorpe,Cole, chairman of the Center for Automotive
an analyst at CSM Worldwide in Byfleet, England.Research in Ann Arbor, Michigan. "It's changing its basic
Consequently, Peugeot named Christian Streiff,business model, so naturally you would expect to see
previously the head of Airbus SAS, to succeed thechanges in the head offices as well.
about to retire head, Jean-Martin Folz.