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VW Labor Representatives Won't Back Additional Acquisitions

Could Volkswagen AG's Next Victim be Lotus?

There have been rumors circulating that Volkswagen AG is interested in Proton, which includes the Lotus debacle, as either minority owners or a controlling stake. But if VW’s labor union officials have any say, this will not take place. Bend Osterloh let the Handelsblatt know that the labor union will not support VW acquiring Proton, Lotus, or any other brand.

Osterloh was quoted saying “We already have 12 brands and we first have to stabilize the group.” Osterloh also agrees that VW needs to increase its presence in Southwest Asia, but the labor union still won’t support VW in this potential purchase.

Osterloh holds a seat on the supervisory board, so he has a little pull in the company, but not that much pull. VW is looking to overtake GM as the world’s largest auto manufacturer by 2018 and we doubt a puny labor union will stop VW. Even the taxman couldn’t put the brakes on VW’s expansion when it purchased, err, restructured Porsche.

We are pretty sure that VW will own at least a portion of Proton before the end of 2013, it just has to figure out how to let its labor union know that it can either come along for the ride or step aside. This should be a pretty interesting one, as we all know exactly how well auto unions and automakers play together, so we may be in for a pretty big power struggle.

Grab the popcorn... We’ll keep you updated.



4 comments:

Volkswagen has been more aggressive on conquering small companies. I don’t like their attitude to buy all those struggling companies.

Volkswagen is trying to extend its scope within the shed of small but failing companies. I’ll not be surprised if VW buys Saab.

Is there something wrong with the plan of Volkswagen to purchase the Lotus and Proton? I think it’s much better if they ruled out these two small companies to strengthen their market ability.

If Volkswagen AG is interested in Lotus and Proton, the company will benefit the rights and its name; the Volkswagen will be stronger and more unbeatable.

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