th some 15 per cent ofthe market. The company has been on an aggressive acquisition trail for adecade and now produces and sells more cars than any other Europeancompany. It is certainly interested in the future of the Bavarian carmakerBMW.Ford, Volkswagen, Renault, BMW and others are all engaged upon strategiesto improve their value chain and reduce supplier numbers. .

Focus on less direct benefits . Spent $30 million on environmental protection in one year . Increased competitive advantage by positioning the company as a leaderin ecologically conscious car manufacturing . Enhanced image of its “high prestige and high value products”Sustainable Development Targets of VolkswagenVolkswagen has the ability to make its future development sustainable – toensure that it meets the needs of the present without compromising theability of future generations to meet their own needs.Group Environmental PolicyVolkswagen develops, manufactures and markets motor vehicles worldwide withthe aim of safeguarding personal mobility. The company acceptsresponsibility for the continuous improvement of the environmentalcompatability of its products and for the increasingly conservative use ofnatural resources, with due regard to economic aspects.

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Accordingly, thecompany makes environmentally efficient, advanced technology availableworld-wide and brings this technology to bear over with the full life cycleof its products. At all its corporate locations, Volkswagen works hand-in-hand with society and policy-makers to shape a development process thatwill bring sustainable social and ecological benefits.7 Basic Principles of the Environmental Policy . Restrict the environmental impact of Volkswagens activities to aminimum. . Combine customers expectations with regards to environmentalcompatibility. . Research and develop ecologically efficient products and processes.

. Ensure a continuous improvement process together with suppliers,service providers, retailers and recycling companies. . Check the performance of the environmental management systemregularly. . Give information to customers, policy-makers and authorities.

. Inform, train and motivate Volkswagen employees in environmentalprotection.Results of the Environmental Performance: ProductVW Lupo 3L TDI: The 3-Litre-Car. . Consuming less than 3 litres of fuel per hundred kilometres. .

Only 81 g/km CO2 Emissions. . Ultra light weight of only 830 kilograms.

. Financial Times Automotive Award for the:Best Breakthrough Produkt” in1999Environmental Protection at Volkswagen : ProductProduct-Development-Process . Fuel efficient cars. .

Alternative fuels. . Alternative power trains. .

Engineering recyclable cars. . Intelligent transport systemsEnvironmental Protection at Volkswagen: ProductionCertified Environmental Management System (EMAS, ISO 14001)Including: . Water management. .

Minimizing air pollution. . Noise abatement. . Waste management. . Efficient energy consumption.

In China: VW Shanghai certified since 1997 (ISO 14001).Volkswagen Employees: of Environmental Success Examples for environmentalmeasures: . Agreement between the management board and the works council on:internal environmental reporting, the rights and duties of theemployees in supporting environmental protection measures. . Special training for managers, supervisors and environmentalspecialists.

. Integration of environmental education into general employeedevelopment schemes. .

Environmental education for apprentices.Suppliers – Working together as PartnersWhat does Volkswagen expect from the suppliers? . A clear commitment to environment protection as a part of their . corporate philosophy. . Continuous improvement process of the environmental aspects of theproduct and manufacturing processes.

. Identify and document the chemical composition of materials supplied. . Ideas for recycling and disposal of the supplied products. .

Close cooperation to find ways to achieve joint environmental goals.The VW Declaration deals with the freedom of association, collectivebargaining, prohibition of child work and forced labour and non-discrimination, as well as remuneration, health and safety and workingtime. Company management will report to the GWC and its Steering Committee,and in cases of reported violations, one of the two will become active anddiscuss ways to solve the problems. The IMF’s coordinator for the VW GlobalWorks’ Council is involved in this discussion and will bring in theposition of the IMF and its affiliated unions.Robert Steiert, of the IMF head office, stated that the Declaration “willnot have its largest impact at existing Volkswagen workplaces, where theprovisions should already be at hand, but is most important for workers atplants to be built or taken over by Volkswagen, especially in lesser-developed countries.”