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Volkswagen Labor Chief Rejects Acquisitions In Near Future: Report

Bernd Osterloh, labor chief of Volkswagen AG (VOW.BE, VLKAF.PK, VKW.L), has rejected further acquisitions by the German car maker in the near future, business daily Handelsblatt reported.

The company now has 12 brands and need to stabilize the group first, Osterloh said. The view is particularly significant in the case of Malaysian automaker Proton, in which the carmaker is said to be interested.

Osterloh said that additional sales and production in Southeast Asia are important, but there is no support for the Proton deal from the workers.

Early this month, Volkswagen finalized its agreement with Porsche Automobil Holding SE (PAH3.DE, POAHF.PK, POAHY.PK) to create an integrated automotive group. Porsche contributes 50.1 percent of its business to Volkswagen for a total cash consideration of 4.49 billion euros, plus one Volkswagen ordinary share.

by RTTNews Staff Writer

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