Volkswagen chief executive Herbert Diess will retain his role at the head of the automaker but is expected to cede some responsibilities.
Diess came under fire in early November from German labor leaders after he said that the car manufacturer needed to accelerate its transition to all-electric vehicles if it wants to establish itself as a legitimate rival to Tesla. He also indicated that the car manufacturer could lose as many as 30,000 jobs if its transition to EVs is too slow.
Following negotiations led by Volkswagen Supervisory Board chairman Hans Dieter Poetsch and including works council leader Daniela Cavallo and the head of IG Metall, Germany’s largest trade union, Joerg Hofman, it is understood that Diess will keep his job while VW brand chief Ralf Brandstaetter will join the management board.
“It is going in the direction that the dispute will be settled and Diess will remain CEO,” an individual with knowledge of the negotiations said.
Reuters reports that Diess will focus on strategy moving forward having previously ceded responsibility for the Volkswagen brand to Brandstaetter in 2020 after squabbling with the company’s powerful labor leaders and managers over the automaker’s scale of cost-cutting plans.
It remains to be seen when Volkswagen will issue a press release regarding Diess’ future within the company.
In late November it was reported that Diess would need to agree to change his management style if he wanted to keep his job. The resolution could come as part of a package including the announcement of new board members, details of job prospects for employees, and investment plans for the Volkswagen Group.
