Leif Östling’s contract extended

Scania’s Board of Directors has extended the President and CEO Leif Östling’s employment contract by three years, until 31 March 2012. The terms and conditions of the new contract will remain essentially the same as in the current contract

The Board of Directors said in a statement they believe that the extension of President and CEO Leif Östling’s employment contract will secure stability and continuity for Scania, to the benefit of all shareholders.

Ostling lead the fight to stop the takeover of Scania by Volkswagen and it was widely believed he would move on as Scania, MAN and VW integrated manufacturing to gain the claimed 1 billion Euros savings from synergies within the three commercial vehicle operations.

The new contract indicates the Swedish company’s determination to maintaion its independence within the group. It may also be an indication Ostling’s former right hand man, and now arch-rival as CEO of MAN, Hakan Samuelsson is for the chop as the two are rumoured to not get along. (See Oliver Dixon’s comment)