We are strongly committed to promoting and safeguarding the recruitment of junior employees with college and university educations. We are intensifying contact with major colleges and universities on the basis of our personnel marketing concepts. We are regularly involved with career fairs and organize several series of events for student groups in house and at fairs, e.g., at international motor shows. In addition, we support Formula Student (SAE) - the international construction competition among colleges and universities for prospective engineers—both in its competitions and with engines specially developed at MAHLE for these sporting and competitive events. In 2007, four colleges and universities from Germany and the USA will take part in these SAE competitions with MAHLE engines. Alongside direct entry into a specialist role, our International Trainee Program forms an ideal platform for attracting junior employees. We specifically develop our management trainees by means of support programs, which normally include international placements.

In 2006, we also started the International Development Program at Group level. It brings together high-potential employees from middle management who are willing to travel abroad to continue their professional development. The objectives of the program are to learn together, strengthen intercultural understanding, and work on real projects as part of an international team. Also in 2006, a worldwide internal job board for specialists and executives was introduced on the Intranet. It provides new opportunities for professional development across national borders and product lines. We are comprehensively expanding the specialist and leadership competence, based on the MAHLE Leadership Model, by means of long-term collaboration in qualification networks on a national and regional basis in all continents.

Cooperation as a basis for successful collaboration
The willingness to cooperate in a spirit of trust with the employee representatives is one factor that guarantees the constructive and successful ongoing development of the Group across the globe. It forms a basis for fair compromise even where there are differing interests. Economic conditions and cost increases resulted in a need for extensive cost reductions, which could not be achieved by productivity improvement measures alone. In most cases, thanks to the good and efficient cooperation of the internal partners, we were able to make the necessary adjustments by means of reasonable solutions that illustrated a sense of responsibility for the whole Company. As part of our corporate culture, this ability to strike a balance - together with technological innovative strength - safeguards the future of the Group and, ultimately, helps to preserve jobs. After all, in the long term, only competitive jobs are secure jobs.

The Management Committee would like to express its thanks to all employees for their proven willingness to perform, their readiness to cooperate across national borders and specialist areas, and the successes they have achieved. Successes that make us proud and allow us to look positively toward the future.