Volkswagen committee still uncertain over chief executive’s future following row with unions

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Volkswagen committee still uncertain over chief executive’s future following row with unions

Volkswagen Announces Financial Results For 2018

The member of Volkswagen’s (VW) executive committee have yet to make a decision regarding the future of chief executive Herbert Diess, following clashes with union representative over his management style.

“This topic is so hot, it is on a knife-edge,” a source told Reuters. “I can’t say anything further.”

Diess has been at the centre of tensions over the last few weeks because he antagonised unions when in a meeting he said that up to 30,000 jobs could be lost if the electrification process was not managed well.

At the end of October, Diess said the company would still manage to keep up with competitors such as Tesla, but not without cuts, including staff reductions at the factory in Wolfsburg – VW’s headquarters located in northern Germany.

The chief executive retained the backing of the Porsche–Piech family, who owns VW’s majority stakeholder Porsche. “The families continue to back Mr. Diess. There has been no change in their position,” a family spokesperson said on 5 November.

Reuters sources said the committee could lean towards keeping Diess at the helm if he agrees to change his management style.

Expected to happen before 9 December, when the group will submit the five-year investment, the resolution on the future of Diess will be part of a bigger package including the announcement of a new board member.

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