Skip to main contentAccess keys help

[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 1 December, 2004, 17:13 GMT
Row over Airbus boss intensifies
EADS chief executives Rainer Hertrich (left) and Philippe Camus
Co-chiefs Rainer Hertrich (left) and Philippe Camus are under pressure
The row over the leadership of Franco-German company EADS has intensified with its German boss accusing French colleagues of "personal ambition".

EADS, parent firm of Airbus, has been gripped by infighting amid reports that the French government wants to appoint a French executive as its sole boss.

The firm, in which the French state is a shareholder, currently has dual chief executives from Germany and France.

DaimlerChrysler, EADS's main investor, opposes the idea of a single boss.

Leadership ambitions

President Chirac is thought to want to replace the current co-chief executives - Rainer Hertrich and Philippe Camus - with Noel Forgeard, chief executive of Airbus.

I cannot comprehend that Noel Forgeard ...has such little regard for the international image of the group
Rainer Hertrich, EADS

Mr Hertrich has now turned on those wishing to replace him and Mr Camus, accusing them of being motivated by "personal ambition".

"EADS should not be a springboard for personal ambition," he told the WirtschaftsWoche newspaper in an interview due to be published on Thursday.

"I cannot comprehend that Noel Forgeard, who accomplishes great things as head of Airbus, has such little regard for the international image of the group," Reuters reported him as saying.

Plans to put a single executive in charge of EADS are supported by Mr Forgeard who has said he would be interested in the position.

French President Jacques Chirac
President Chirac is believed to support a change of leadership

According to Mr Hertrich, the leadership of EADS is being influenced by political considerations in France.

"In France, (former finance minister Nicolas) Sarkozy and (President Jacques) Chirac are competing to see who is the better political man in terms of industrial policy," he added.

Continuing speculation

DaimlerChrysler, the German-American car manufacturer which owns 30% of EADS, said on Monday that it wanted to retain the current leadership structure.

An official from French media and defence firm Lagardere, another leading shareholder, told the Financial Times that plans to install a single boss at EADS were effectively "dead".

However, speculation about the leadership of EADS is expected to rumble on since the contracts of both co-chief executives expire next July.

The situation is complicated by the fact that the French government is believed to be keen on merging EADS with French defence electronics firm Thales.

However, German executives are said to be concerned that a merged firm would be French dominated.

EADS' shares closed up 0.5% at 22.88 euros on Wednesday.


SEE ALSO:
Why curbing trade wars is tricky
30 Nov 04 |  Business
EADS 'ready' for US air force bid
23 Nov 04 |  Business
EADS 'may bid for parts of BAE'
17 Nov 04 |  Business
EADS quells Thales merger rumour
18 Nov 04 |  Business
EADS boosted by Airbus orders
04 Nov 04 |  Business
Q&A: Boeing and Airbus
07 Oct 04 |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
AmericasAfricaEuropeMiddle EastSouth AsiaAsia Pacific