Stockholm  - The board of Swedish heavy-vehicle and bus maker Scania Monday said it has extended Chief Executive Leif Ostling's contract by three years until March 2012.

The board said that the decision aimed to "secure stability and continuity for Scania, to the benefit of all shareholders."

Ostling, 62, has been CEO of Scania since 1994. He was under contract to March 2009.

He was a vocal critic of a hostile takeover bid launched in 2006 by German truck and engineering group MAN. The bid was dropped in January 2007.

Earlier this year, Swedish investment group Investor AB sold its stake in Scania to Volkswagen, making the German automotive giant majority-owner of Scania.

Ostling was recently named board chairman of Swedish bearings group SKF. (dpa)