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UPDATE 1-VW mulls new 2022 growth goal, nears 2018 target early
January 31, 2013 / 4:26 PM / 5 years ago

UPDATE 1-VW mulls new 2022 growth goal, nears 2018 target early

(Adds comments from head of works council, details, background)

* Management board considers new volume targets for 2022 -Osterloh

* Supervisory board eyes limits to gains in manager pay -Osterloh

* VW will not reach 10 million unit sales this year -Osterloh

By Andreas Cremer

WOLFSBURG, Germany, Jan 31 (Reuters) - Volkswagen’s top managers are drawing up new expansion goals stretching as far as nine years ahead as steady volume gains have already propelled the German group within reach of its current sales target for 2018.

“We definitely need a new (growth) strategy,” Bernd Osterloh, head of VW’s works council, told reporters in Wolfsburg on Thursday.

The new targets VW’s nine-member management board is pondering might reach until 2022, he said.

VW’s existing roadmap, drawn up in 2007 when Chief Executive Martin Winterkorn took office, lays out steps to become the world’s biggest car maker by 2018, by increasing annual sales to 10 million units that year.

The company, Europe’s biggest car maker, increased global deliveries 11.2 percent last year to a record 9.1 million vehicles.

While ruling out that it will hit the 10-million goal as soon as this year, Osterloh said the car maker “must consider whether 2018 is still the appropriate standard.”

New growth goals may also lead executives to tighten rules on managers’ pay at the German multi-brand automotive group, said Osterloh, who is also deputy head of VW’s supervisory board.

Compensation guidelines at VW drew public criticism after CEO Winterkorn’s pay doubled in 2011. The supervisory board is mulling steps to limit future increases in executives compensation and will take a decision on the matter at its next meeting in late February, said Osterloh.

Winterkorn earned 17.5 million euros ($23.75 million) in fixed salary, bonuses and profit incentives in 2011, compared with 9.3 million euros a year earlier, making him the highest paid chief executive among Germany’s top 30 companies listed on the DAX index.

“Winterkorn, with his salary, is being made the scapegoat for this debate driven by envy,” said Osterloh. “The management board has come to the conclusion that this can’t be fought out over the long term.” ($1 = 0.7370 euros) (Editing by Anthony Barker)

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