Volkswagen tells hedge fund TCI it welcomes investor dialogue
FRANKFURT (Reuters) - Volkswagen senior managers agree with many of the criticisms made by British hedge fund TCI about the performance of Europe's largest carmaker, according to a letter seen by Reuters. In a letter sent by Volkswagen Chief Financial Officer Frank Witter on May 17, addressed to Sir Chris Hohn, Europe's largest carmaker responded to criticism that it was in need of a performance hike and a new governance structure. "The Volkswagen Group always welcomes constructive dialogue with its investors and we appreciate that you have taken the time to set out your views," a copy of the letter, seen by Reuters said. Volkswagen told TCI that the reforms made in the wake of its diesel emissions testing scandal were dragging on. "We are all frustrated at the time this is taking," the letter said. Volkswagen has however made significant progress implementing a new structure for the company and the VW brand. "In particular we would like to highlight the introduction of product line management where the best ideas from Porsche are being introduced into the engineering processes of the Volkswagen brand," the letter said. Management incentives and bonuses would also be looked at as part of a process of devising a new strategy 2025 which is due to be unveiled before summer. (Reporting by Jan Schwartz, writing by Edward Taylor; Editing by Harro ten Wolde)
