Drama never ceases to unfold within the Volkswagen Group and the latest topic of discussion is rather unusual: CEO Herbert Diess has apologized to the carmaker’s supervisory board.

In a short statement issued June 9, the VW Group acknowledged the apology but did not mention the reason that caused it. “At yesterday’s Supervisory Board meeting, which focused on personnel matters, the Supervisory Board and Dr. Herbert Diess also discussed statements of Dr. Diess at an internal event,” the company said.

“Dr. Diess formally apologized for these statements towards the members of the Supervisory Board, declaring that these statements were inappropriate and wrong. The members of the Supervisory Board accepted the apology of Dr. Diess, and will continue to support him in his work,” reads the press statement.

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Volkswagen Group CEO Herbert Diess

So what on earth is this all about? According to Reuters, Diess previously accused some members of the VW supervisory board of leaking confidential information to the press, though reports from Germany claim the real cause of the conflict is opposition from the Works Council regarding the pace and magnitude of cost-cutting plans.

Porsche Automobil Holding SE, the holding company of the Piëch and Porsche families that controls Volkswagen, was willing to share more details about the unusual incident. According to a spokesman, Diess said during an internal video conference with thousands of executives that members of the supervisory board’s executive committee had leaked information to the media, calling such actions “crimes.” Apparently, the leaked facts included the Golf Mk8’s persistent software issues and Diess’ alleged request for an early contract extension.

VW halted deliveries of the Golf Mk8 in May for about a month to fix software issues

The news agency’s report cites two sources familiar with the matter who claim the supervisory board saw the CEO’s comments as an attack on the company’s directors and convened an extraordinary meeting on Monday to discuss the matter.

The fact the Volkswagen Group chose to make this conflict public in a press statement amounts to a severe warning for Diess and sheds new light on the board’s decision to reduce his responsibilities. On Monday, the carmaker appointed Ralf Brandstätter as CEO of its main VW brand.

The latter will have the difficult task of leading cost cutting efforts at the company’s largest plants in Germany.

VW Group CEO Herbert Diess and new VW brand CEO Ralf Brandstätter during happier times