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◆ AUGUST 21, 2006 AUTOMOTIVE NEWS EUROPE 13 ◆ Simply the best

Each year the editors and reporters of Automotive News Europe select who they think are the best executives in the car industry. The decisions are, by nature, subjective. And with the wealth of talented people working in all corners of the car business, the choices are always difficult. But the 14 executives we picked have all excelled in many ways. They have made lasting contributions to their companies and to the industry as a whole. Congratulations to all of our 2006 Eurostars!

Chief financial officer Stefan Krause BMW board member for finance Age: 43

Anyone who thinks all automotive chief financial officers are boring, uninspired “bean counters” obviously hasn’t met Stefan Krause. BMW group’s finance boss is a tough, open-minded straight talker whose talent with numbers has helped the automaker earn huge profits despite unfavorable currency exchange rates, skyrocketing raw materials prices and intense competition. But Krause has done more than just manage the numbers. Financial analysts praise his openness and say he has created a greater degree of transparency in the company’s books. That has helped the company’s stock price. BMW’s 2005 pre-tax profit slipped 8 percent to E3.29 billion, but the company forecasts a rebound to E4 billion this year. That ambitious goal perfectly fits Krause’s results-driven personality. Born and raised in Bogota, Columbia, he brings a dose of Latin passion to the Bavarian company’s board room. He will need all his energy to help BMW hit its next target – sales of 1.6 million units by 2010 – without sacrificing profitability at the world’s largest premium carmaker. Photo: Beatrice Vohler

Supplier CEO Siegfried Goll ZF Friedrichshafen CEO Age: 65

CEO Siegfried Goll has excelled at extending ZF Friedrichshafen’s reach through acquisitions and partnerships during his five Project leader years at the helm of the German supplier. Cristina Siletto Recent projects include a cooperation on hybrid Fiat Auto vehicle line executive for large and premium models technology with Continental and the Sports Utility Cabrio Age: 41 concept car that ZF built together with contract manufacturer Karmann. Cristina Siletto really is enjoying the success of the Fiat Grande Punto. She should. Without her the But Goll’s masterpiece was the 2001 purchase and car probably would not be such a hit. integration of components supplier The head of the Grande Punto project did two things that have not been done at Fiat Auto in more Mannesmann Sachs, which is now ZF Sachs. than a decade: She met all of the car’s quality targets and did so within budget. “Sachs was a very big acquisition, but we have Siletto also had the car ready for showrooms last September – two months ahead of schedule. mastered it, and we are well on our way. The whole Being quick to market gave Fiat Auto more time to win buyers from rivals /Vauxhall and business is now a core part of our group,” Goll told Peugeot, whose aging Corsa and 207 small cars are being replaced this year. Automotive News Europe earlier this year. Customers have rewarded Fiat Auto by making the Grande Punto one of Europe’s top-selling small cars. A consistently strong performer in a tough market, By beating 2005 sales expectations, the Grande Punto helped give Fiat Auto a fourth-quarter ZF reported sales of almost E11 billion last year, up operating profit of E21 million – the automaker’s first positive result after 17 consecutive quarters 8 percent from 2004. of losses. Since Goll started with the company in 1963, ZF Siletto’s work on the Grande Punto earned her a huge promotion last November. She is Fiat Auto’s has evolved from a transmission maker into a vehicle line executive for large and premium models. chassis and drivetrain specialist. The 2002 Automotive News Europe Woman of the Year now oversees four platforms that underpin Goll will retire on December 31. He will be replaced eight Fiat Auto cars ranging from the Alfa Romeo GT to the Fiat Croma and Lancia Thesis. on January 1, 2007, by Hans-Georg Härter, 60, If she can meet each car’s cost and quality targets, Fiat Auto has a chance to achieve another first: who currently heads ZF Sachs and also is having a top seller above the minicar and small-car segments. responsible for ZF’s operations in Asia-Pacific. AN_060821_13_16.qxd 15.08.2006 16:20 Uhr Page 14

◆ 14 AUTOMOTIVE NEWS EUROPE AUGUST 21, 2006 ◆

Supplier division CEO Wolfgang Dehen Group CEO Siemens VDO Automotive Sergio Marchionne President Fiat group and Fiat Auto CEO Age: 52 Age: 54 Siemens VDO Automotive Sergio Marchionne’s message to employees after he took over as President Wolfgang Fiat Auto CEO in February 2005 was clear and simple: “I told them Dehen has turned that we would build a team and try to fix the damn thing.” around the division and To form his team, Marchionne, who also is Fiat group CEO, either strongly improved its fired or reassigned executives whose divisions were performing products and quality. poorly. While Marchionne admits that Fiat Auto remains on the Since Dehen took over in comeback trail, he is thrilled with the executives who are helping July 2002, Siemens VDO him fix the once-reeling Italian automaker. has gone from being a “Great organizations and great people can do great things,” loss-making subsidiary of Marchionne said. “We’re growing some great kids in our house.” the Siemens electrical and The highlight of Marchionne’s continuing turnaround of Fiat group electronics giant to a has been his work at Fiat Auto. The car division reported a first-half division that contributed E E 630 million to the operating profit of 145 million. During the same period last year E Fiat Auto had an operating loss of E217 million. group’s 4.7 billion profit in But Marchionne has done a lot more than put the Italian the fiscal year that ended conglomerate’s largest division back on track. September 30, 2005. Fiat group’s other businesses – truckmaker Iveco, agricultural Dehen managed to cut the and construction equipment specialist Case New Holland (CNH) supplier’s overall rate of faulty and vehicle component maker Magneti Marelli – are even more parts (measured in parts per profitable now than when Marchionne took charge of the group million or ppm) from 167 ppm in in June 2004. 2002 to 30 ppm in 2005. Dehen’s Even without Fiat Auto’s contribution, the group’s first-half ultimate goal is even more operating profit was E837 million, up from E634 million during the ambitious. “Zero ppm is same period last year. possible, even in electronics Marchionne’s goal is for Fiat group to have a net income of close and software,” he says. to E1 billion for the full year and between E1.4 billion and Dehen also is on track to E1.6 billion by 2007. achieve his strategic goal To reach that goal he expects big results: a 10 percent operating of creating an even mix of profit for CNH and a 7.5 percent operating profit at Iveco. business between Europe, Fiat Auto will be expected to deliver a 4 percent operating profit. Asia and North America. In Marchionne believes the bulk of the work to fix Fiat Auto has been 2002, 71 percent of Siemens done: “The team is in place and is working with enthusiasm and VDO’s sales were generated in Europe, 21 dedication.” percent in North America and 7 percent in Asia. Since January Marchionne has dedicated half his working hours to That ratio changed to 61:27:10 in 2005. The long-term goal is to have each CNH. continent represent one-third of the supplier’s sales. That, by the way, is a huge commitment of time considering that Dehen is ambitious. He wants Siemens VDO to pass Robert Bosch and the chain-smoking, tie-hating executive works 20 hours a day Denso to become the world’s No. 1 automobile electronics supplier. 6 days a week.

Purchasing executive Jean-Philippe Collin PSA vice president of purchasing Age: 50

When PSA/Peugeot-Citroen hired Jean-Philippe Collin two years ago to head its purchasing division, the French automaker signaled that global sourcing had become top priority. PSA chose an outsider with an engineering and international background rather than a seasoned company veteran. One reason Collin was picked was because he Car division CEO brought PSA expertise in a key area: electronics. Detlef Wittig His previous job was head of purchasing at Skoda chairman French electronics giant Thomson. Age: 64 Collin searches the world for suppliers that can deliver quality parts at competitive prices. “He is Skoda has enjoyed record production and profitability during PSA’s own cost-killer,” says a PSA insider, in an Detlef Wittig’s tenure as the Czech automaker’s chairman. allusion to rival Renault’s famed cost-killer, CEO Skoda is on track to produce and sell a record 500,000 cars Carlos Ghosn. in 2006. At the same time it is making a lot of money. Collin’s natural affability may help lessen Its first-half net profit increased 62.2 percent to 6.4 billion the pressure he puts on suppliers. crowns (E228 million) compared with the same period last year. His colleagues marvel at the Skoda reported record profits in both 2004 and 2005. contrast between his short, Skoda has become a more global player under Wittig. blunt e-mails and his genial Since he took over in 2004, Skoda has started production in disposition when in a Kazakhstan and increased output in India and Ukraine. face-to-face meeting. The brand’s models will be made in China starting later this Shortly after taking year and in Russia by the middle of next year. office, Collin got the Wittig-led negotiations in Russia resulted in parent attention of PSA’s group’s decision to build a factory near Moscow. suppliers by publicly The Skoda Octavia will be the first car produced there. urging them to improve Wittig also has overseen an increase in the brand’s lineup quality and starting a starting with the development and launch of Skoda’s fourth three-year plan to model, the Roomster. Deliveries of the small minivan start in meet his goal. September in the major European markets. He set standards and Wittig knows the Czech automaker better than anyone at VW. He measurements as arrived at Skoda in 1995, four years after VW bought its first well as rewards and stake in the brand. He returned to the parent company in 2000. punishments. Earlier Wittig is proud of the changes made at the carmaker over the this year he said that last decade and a half. the quality of the parts “Ten, 15 years ago when we jumped in a Skoda, we were PSA receives from mostly scared,” Wittig recalls. “Now we are a leading suppliers had improved automaker in terms of safety and quality.” by 45 percent since his Car buyers have noticed the improvements. The brand ranks three-year initiative started. in the top 10 for customer satisfaction in , France and the UK based on surveys done this year by researcher J.D. Power and Associates. AN_060821_13_16.qxd 15.08.2006 16:20 Uhr Page 15

◆ AUGUST 21, 2006 AUTOMOTIVE NEWS EUROPE 15 ◆

Human resources Ernst Baumann BMW board member for human resources Age: 58

BMW’s lean manufacturing model owes its success partly to the flexible working agreements fostered by Ernst Baumann. The company’s human resources director is responsible for innovative and flexible solutions that allow the carmaker to easily shift model OEM/Supplier r&d project production and workers between the Giuseppe Bonollo (left) company’s different plants. Fiat Auto Vice president of product portfolio Baumann is also responsible for hiring management a diverse group of employees for its Age: 41 Leipzig plant, which opened last May. In Leipzig, BMW’s work force includes Martin Thall (right) people who are well into their 50s. The Microsoft general manager of automotive goal was to create an environment with business unit a rich mix of knowledge, experience and Age: 45 temperament. Baumann also won BMW extra flexibility Three and a half years ago, Microsoft’s attempts to convince automakers to put a USB when it comes to the number of hours a week connection in their cars were met with a nearly unanimous “No thank you.” the Leipzig factory can operate. The plant in Fiat Auto was the exception. At that time, the Italian automaker was working on a project eastern Germany produces cars between 60 that was similar to Microsoft’s. After Fiat Auto executives tried Microsoft’s Windows- to 140 hours a week – compared with 80 to based solution, they decided they wanted it in their cars. 140 hours a week at BMW’s other European Blue&Me debuted in February at the Geneva auto show in the Fiat Grande Punto and factories. The benefit of having the lower Alfa Romeo 159 and Brera. The upgradeable infotainment system lets more than number of minimum hours at the Leipzig plant 100 different models of Bluetooth-equipped mobile phones link directly into a car’s is that BMW can react better when demand for audio system and allows motorists to play music from memory sticks and MP3 players. cars from the plant is low. The feature also makes extensive use of voice recognition. Baumann established a bus service for “I pushed hard to have as many voice-activated commands and functions as possible employees at BMW’s Munich, Dingolfing and because our efforts should increase safety and not distract the driver,” said Giuseppe Regensburg, Germany plants. The service Bonollo, Fiat Auto’s vice president of product portfolio management. allows BMW to shift workers to the plants The Blue&Me fit rate in the Grande Punto, the first model to offer the feature, already is where they are most needed. The buses pick more than 10 percent. That is three times better than the fit rate for all hands-free phone up workers and bring them home after work, systems previously offered by Fiat in the car. making the journey safe and easy – especially One reason for Blue&Me’s success is that Fiat Auto and Microsoft have made it after tiring night shifts. affordable. The feature costs E222 in Fiat models and E299 in Alfa Romeo cars. Photo: Beatrice Vohler The starting price for just a Bluetooth-based mobile phone interface is E250.

Emerging market brand Gerard Detourbet Renault vice president for Designer worldwide X90 program Martin Smith Age: 59 executive design director Age: 57 Gerard Detourbet is working hard to make the Logan a world car. Martin Smith has a talent for picking the “No place without its Logan – that’s Renault’s right mixture of ideas to create a beautiful slogan,” Detourbet said in March 2005 as Renault vehicle. and Indian automaker Mahindra & Mahindra When he started as Ford of Europe’s were signing a deal to co-produce the car in executive design director in July 2004, his that country. team already had a number of styling The head of the Logan world program elements in mind for the car that would crisscrosses the planet in search of suitable introduce Ford’s new European look. locations to build the robust, low-cost, family- Smith’s job was to pick the features that he sized car. wanted to use to define the carmaker’s “We explore everything, everywhere,” he said at “kinetic” design language. the event in India. The choices he made were represented in The Logan will be built in India starting next year. the Iosis concept car that debuted at the Production of the X90, the Logan’s code-name, 2005 IAA in Frankfurt. The concept originated at Renault subsidiary Dacia’s plant in displayed a pure, elegant, almost sculptured Pitesti, Romania, in 2004. Since then Renault has look. Such features should come as no signed contracts to have the car made in Morocco, surprise considering that Smith started his Russia, Colombia, Brazil and Iran. design career at and spent 20 Detourbet has to choose the production locations years at before moving to Ford. wisely. It is his job to make sure the Logan – The message Smith was sending with the despite its low cost and it expanding production Iosis was clear: He wanted a look that was base – is profitable over its life cycle. Renault says totally different from the angular, intersecting that so far the X90 program is a money maker. lines that are core components of the About 300,000 Logans have been sold from its “new-edge” design philosophy Ford had launch in September 2004 until June 2006. been following since 1996. Those who know Detourbet say that he is not The Ford S-Max and Galaxy are the first afraid of difficult tasks. production vehicles to offer elements of “The tougher the challenge, the more Gerard kinetic design. Detourbet likes it,” says Renault spokeswoman Initial media and public reaction to the cars Marie de Saint-Cheron. She worked on his team has been positive. People find the S-Max when he headed Renault’s powertrain division and Galaxy to be more dynamic looking between 1997 and 2001. than previous Fords. Detourbet has a slightly unusual profile for a car The next car to be styled using kinetic company executive: He started his professional life as a mathematics teacher at Paris 6 University design cues will be the . If (also known as Pierre and Marie Curie University). Smith and his team succeed at making the “He sets objectives very clearly,” says Saint-Cheron, who adds that Detourbet also is brave enough conservative upper-medium model more to challenge the conventional way of doing things. emotional, he might be collecting another Eurostar next year. AN_060821_13_16.qxd 15.08.2006 16:20 Uhr Page 16

◆ 16 AUTOMOTIVE NEWS EUROPE AUGUST 21, 2006 ◆

Sales and marketing executive Rae-Su Cho Public relations marketing director Richard Gaul Age: 45 BMW senior vice president, corporate communications and policy If it seemed as if Hyundai appeared everywhere Age: 60 during this summer’s World Cup soccer championship in Germany, then Rae-Su Cho can Richard Gaul has dealt with almost every kind take a lot of the credit. of corporate crisis. The one exception is that As the director of marketing for Hyundai Motor he has never had to explain a collapse in Europe, Cho’s job is to raise Hyundai’s brand BMW brand sales. recognition. The World Cup certainly helped. Hyundai Considered the dean of Europe’s media was the only automaker sponsor for the event. relations bosses, Gaul excels at being frank Cho helped draft the sponsorship contract for the and informative. World Cup with FIFA, soccer’s governing body, and A former newspaper reporter at Die Zeit, established Hyundai’s marketing plan for the games. Kölner Stadt-Anzeiger and Manager Cho helped organize high-profile Hyundai-sponsored Magazin, Gaul was hired by BMW in 1985 events in every city that hosted World Cup matches and and named head of corporate coordinated the use of 1,000 Hyundai-labeled vehicles communications and policy four years later. in Germany to transport FIFA officials, players and media Because of his extensive product members to World Cup games and related events. knowledge and good relationship with the In addition to those jobs, Cho was in charge of Hyundai’s media, Gaul has made BMW a leader increased advertising in Europe’s biggest markets. when it comes to communications. There will be more work to do soon. During his two decades with BMW, Gaul has Hyundai’s product lineup is expanding and Cho’s task successfully crafted the company’s message will be to make sure the Hyundai name is in the minds of while working with four BMW chief executives car buyers throughout Europe. In the near term, his job who have different management styles: Eberhard will be to further increase brand awareness and improve von Kuenheim, Bernd Pischetsrieder, Joachim Hyundai’s image as well as successfully launch lower- Milberg and Helmut Panke. medium, and small cars between 2007 and 2009. Gaul’s career has proved his resilience when And his soccer days aren’t over. Cho already is preparing faced with difficulties. In 2000, his job was to Hyundai’s marketing plan for the 2008 European soccer explain why BMW couldn’t fix Rover and had to sell championship that will be held in Switzerland and Austria. the carmaker. Gaul handled the flow of news about one of the year’s biggest stories with grit and good humor, media colleagues say. Gaul will retire this autumn and be replaced by Maximilian Schöberl, the former director of corporate communication and policy at Vodafone D2. Manufacturing executive Photo: Beatrice Vohler Gilles Michel PSA executive vice president, platforms, technical affairs and purchasing Age: 50 CEO of ultraluxury brand Gilles Michel has poise and humor. He needs Ulrich Bez both to lead PSA/Peugeot-Citroen’s drive to Aston Martin CEO become more global and efficient. Age: 63 “He is at the controls right inside the corporate engine room,” one of his colleagues at PSA says. When Ulrich Bez became Aston Martin CEO in July 2000 the luxury sports Michel is in charge of implementing PSA’s product car maker was struggling. The Ford-owned British premium brand was a plan. He makes sure that PSA’s vehicles, which are cash-strapped builder of expensive, offbeat sports cars for a limited designed and developed under his supervision, clientele. are compatible with the three main platforms the Bez focused Aston Martin on a much clearer set of values. group uses to produce cars on three continents. The German native who previously worked for Porsche and BMW not only He has cut costs by making sure that PSA cars has Aston Martin producing more models, but the cars appeal to a much made on the same platform share 60 percent wider audience. The reason is the customers can expect the same quality, of their components. Another way he saves performance and unique styling from every Aston Martin. money is by purchasing more parts in the “Before, we had a kind of brutal sportiness,” he explains. “Now, we’re countries where PSA plants are located. aiming for a refined sportiness but with a black-tie type of character.” Michel is widening PSA’s supplier base The approach has been highly successful. From 2004 to 2005 sales of so that it buys between 30 percent Aston Martin’s growing lineup of gorgeous models jumped more than and 40 percent of its components 150 percent to 2,701 units. Though Bez wouldn’t be specific, he said the in China, eastern Europe and sales surge helped Aston Martin make a profit last year. South America by 2010, Asked to explain the secret of Aston Martin’s success as an ultraluxury compared with between 5 percent and 10 percent today. brand, Bez said it was because the carmaker offers a nonconfrontational, Michel’s area of responsibility includes 16 assembly plants that stretch from Europe to understated elegance that customers cannot find in other marques. James Asia to South America. The newest of PSA’s plants opened on schedule in April in Bond would agree. Trnava, Slovakia. It makes small-segment cars. Last month, the automaker announced it would open a new factory next to its existing plant in Wuhan, central China, in 2009. Because he plays such a major role in the automaker’s future success, Michel’s name often is mentioned when experts are asked to speculate on who will replace PSA CEO Jean-Martin Folz. When asked about this, Michel says that all the talk about his future is a mixed blessing: “I’m not sure whether the speculation is doing or undoing my career.”

Product development executive Jens Ludmann Ford of Europe chief program engineer for upper-medium models Age: 42

Jens Ludmann is a big reason that the new Ford S-Max exists. Ford sources say that Martin Leach, Ford of Europe’s former president who left the company in 2003, decided Ford of Europe needed to expand its lineup by adding a model between its Galaxy large minivan and Mondeo upper-medium model. What Ludmann helped create is a potential segment buster that combines the performance of a sedan with the functionality of a minivan. He put the car together by masterfully following the principles of Ford’s shared technologies program. The US automaker believes that its different brands can save money by pooling their engineering resources. Ludmann frugally added a new car to Ford’s European lineup by having the S-Max share its architecture and many key parts with the Galaxy and the Volvo S80 medium-premium sedan. The new Mondeo, which is due next year, also will be based on the platform. Ludmann, Ford of Europe’s chief program engineer for upper-medium models, says the automaker worked hard to make the S-Max drive like a car and not a big van. Early media reviews say Ford of Europe has succeeded. The S-Max consistently is praised for its handling and comfort. Ludmann works quickly and effectively. His colleagues say he is dedicated, focused and has a clear understanding of what it takes to make sure a project is done right.