Volkswagen loses head of VW brand

01/11/07 - newratings.com

LONDON, January 11 (newratings.com) - Volkswagen AG (VW-EUR), Europe's largest carmaker, Thursday announced the resignation of the head of its VW brand, Wolfgang Bernhard, with the company’s new chief executive extending his reach.

Germany-based Volkswagen said in a statement that Bernhard would leave on January 31. Martin Winterkorn, Volkswagen’s new chief executive and a close ally of VW’s Chairman Ferdinand Piech would take control of the brand. Winterkorn, who previously headed the company's Audi division, declared his intention to reorganize the company after taking over at the beginning of the year. Pischetsrieder, the company’s former chief executive, had hired Bernhard to cut costs and boost sales. Bernhard took over the VW brand in May 2005. Shares of Volkswagen rose by nearly 0.3% to close at €82.84 in Frankfurt.