BERLIN (AP) -- German automaker Volkswagen AG says its board has agreed to extend the contract of chief executive Martin Winterkorn through the end of 2016.
The company, Europe's largest automobile maker, said late Sunday its board had unanimously approved the extension of Winterkorn's contract, which was set to expire on Dec. 31, 2011.
The decision should allow Winterkorn to preside over VW's planned merger with Porsche AG. It will join Audi, Seat, Bentley and Skoda on the Wolfsburg-based automaker's brand list.
Winterkorn took over as VW head in January 2007.
Shares of VW jumped 3.17 percent to €125.25 ($167.36) on Monday in Frankfurt midmorning trading.