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'ForMotion' is moving fast

Details for the VW austerity program will be finalized by April 16th

Wolfsburg. The VW Group's board of directors has set tight deadlines for its managers and their work groups under the "ForMotion" austerity program.

VW boss Bernd Pischetsrieder and his six colleagues on the board -- who act as promoters for each work group -- hope that by setting clear milestones they can save an additional 2 billion euros by the end of 2005 as planned.

The project managers are required to define the specific aims of their work groups by April 16th. The board of directors will discuss those in the following week.

By July 22nd, and possibly earlier, the board will decide how much the seven work groups will need to save individually. The groups range from "production costs" (promoter: Francisco Javier Garcia Sanz) to "one-off expenditure" (promoter: Martin Winterkorn) to "overhead costs / process optimization".

The board will then finalize a detailed time schedule. On September 10, the respective figures will be included in "planning group 53", which is the VW Group's budget.

The corporation also put together a complex "ForMotion" video presentation for top managers of its foreign plants, which can be accessed via Volkswagen's intranet.

Pischetsrieder does not plan to make any cuts within VW model planning, despite the austerity course.

That decision has resulted in a dispute with Porsche.

A new 3.6-liter engine with 280hp, which VW plans to use in the Touareg off-roader from 2006, triggered the argument. Porsche fears competition disadvantages, as the V-6 direct injection engine for the Cayenne will be launched at a later date.

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