VW restarts talks with Andhra CM

German car-maker Volkswagen has deputed Frank Elbe, former German ambassador to India, as a special envoy to represent its interests in the country.

Bernd Pischetsrieder, the company's chief executive officer, and Detlef Wittig, member of the Board of management, in a letter addressed to Chief Minister Y S Rajasekhara Reddy today also informed that Frank Elbe would be visiting Andhra Pradesh for talks with the government.

"We would like to inform you that due to the unexpected and unpleasant incidents in the recent past, the Volkswagen India Project is only temporarily put on hold so that we confirm again our serious intention and strong interest in entering the Indian market," the company's chief executive officer assured the chief minister through the letter.

It is the first official communication written to Chief Minister Rajasekhara Reddy by the company after its recent decision to compensate Rs 11 crore paid by the state government to Vasishta Wahan. Reiterating the company's stand, the letter maintained that Volkswagen will assume responsibility for the damage caused by the suspected illegal dealings of Schuster.

Terming that Frank's responsibility will be to communicate to the authorities of India the company's firm intention to prevent and avoid any damage to present and future relations of Volkswagen with India, the letter said that Elbe was chosen because of his knowledge of India and his well-known and long standing commitment to serve Indo-German relations. They advised the state government to hold talks with Elbe, who will be visiting India soon before sending a delegation to Germany.

It may be recalled that the state industries department officials had sought an appointment with Pischetsrieder to exchange information on recent happenings as well as to discuss about setting up of the proposed car manufacturing plant at Vizag.