Business InsiderTop News

Exclusive: Volkswagen supervisory board to discuss VW brand leadership – sources

imageStock Markets5 hours ago (Jun 08, 2020 12:35PM ET)


(C) Reuters. VW re-starts Europe’s largest car factory after coronavirus shutdown


FRANKFURT (Reuters) – Volkswagen (DE:VOWG_p) Chief Executive Herbert Diess may lose responsibility for managing the company’s core VW brand at an extraordinary supervisory board meeting due to be held on Monday, sources familiar with the matter told Reuters.

Diess, who has come under fire after Volkswagen struggled to manage the launch of its next-generation flagship VW Golf, will remain chief executive of the group, which includes the Audi, Seat, Skoda, Audi, Porsche and Bentley brands, the sources said.

The contenders who could succeed Diess as head of the VW brand include Volkswagen’s Chief Operating Officer Ralf Brandstaetter and Porsche Chief Executive Oliver Blume.

The discussions are ongoing and have not reached a conclusion, the sources said.

Volkswagen declined to comment.

The power struggle at the top of the world’s largest carmaker comes as Diess attempts to get the company’s labour leaders, who control nine of the 19 seats on the supervisory board, to agree to painful costs cuts.

Diess has been pushing to cut costs in Germany to help pay for a 34 billion euro ($38 billion) investment in electric and autonomous cars and 50 billion euros for EV battery procurement.

If directors from the German state of Lower Saxony, which controls a 20% stake in the carmaker, side with labour leaders they can veto significant decisions by Volkswagen’s management.

Diess was appointed head of the VW brand in 2015 after defecting from BMW (DE:BMWG) and then climbed to the position of group chief executive in April 2018.

His grip on the car and truck manufacturer seemed to have increased after German prosecutors dropped a market manipulation investigation against him last month.

However, he has been criticised after Volkswagen was forced to halt sales of its newest Golf because of software glitches at a time the company is preparing to mass produce VW’s ID.3 electric car.

In addition to forcing Volkswagen to embark on a radical electrification strategy in the wake of the carmaker’s diesel-cheating scandal, Diess appointed BMW manager Markus Duesmann as the head of Audi.

Exclusive: Volkswagen supervisory board to discuss VW brand leadership – sources

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!