Profit-Sharing for Volkswagen Employees Reaches Record Level

Ten percent of the operating profit of the Volkswagen brand plus an extra financial reward

Wolfsburg, 10 March 2008 - Employees at Volkswagen Aktiengesellschaft are to receive a record profit-sharing bonus. In addition to the ten percent of the operating profit of the Volkswagen brand provided for in the collective wage agreement, the Volkswagen Group Board of Management has added an extra financial reward this year. The 86,000 employees covered by the collective wage agreement will therefore receive a total of 3,700 euros.

Volkswagen Aktiengesellschaft Board of Management Member for Human Resources, Dr. Horst Neumann, said in Wolfsburg on Friday: "Performance-related bonuses are based on a simple principle: anyone who makes a proactive contribution and works well deserves a reward. In the 2007 financial year the Volkswagen team worked flat out to deliver first-class vehicles and services to our customers. Not only that – the team has played a decisive role in restructuring the company by returning to normal working hours with no extra pay. A top employer honors such exceptional commitment. And we have by no means reached the end of the road yet."

The Chairman of the Group Works Council, Bernd Osterloh, stressed that "there has never before been such a profit-sharing bonus for our employees. This once again demonstrates the success of our 2006 collective pay negotiations. At that time, when the company was in the middle of its restructuring process, we negotiated three core items. First: long-tem job security – by no means a given in our industry. Second: the Board of Management gave the workforce specific and binding assurances as to the products and unit volumes to be manufactured at their plants. Third: the workforce is to benefit significantly from the company’s commercial success which we have jointly achieved. Our recent demand for an extra financial reward was likewise exactly right."

1,191 euros were already paid in November 2007 under the profit-sharing program as a lump-sum advance payment for every employee. The present additional payment amounts to 2,509 euros and will be included in the May pay packet. Profit-sharing for the 2006 financial year totaled 2,710 euros.

Note for newsdesks: The sum to be paid out under the profit-sharing program quoted in this press release cannot be used to extrapolate the operating profit of the Volkswagen brand for the 2007 financial year. The sum includes a special bonus which is not calculated from the operating profit. The Volkswagen brand’s operating profit will be announced on March 13.

Source: Volkswagen

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