Tuesday, December 20, 2005

Board rifts threaten VW's profits

Mitbestimmung - The German Way is Causing Problems at VW

Volkswagen is facing its own problems in the changing automotive scene. Profitable in Europe, VW is losing money in the US and in most of the rest of the world. VW's German unions have board representation. This, and an overall political and cultural environment that puts a premium on satisfying the workforce, a cultural norm called "mitbestimmung", could make restructuring even more difficult for Volkswagen than it will be for General Motors.




Board rifts threaten VW's profits: "Mitbestimmung"

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