Volkswagen CEO Deiss to Remain Following Internal Power Struggle: Report
An internal dispute taking place between leadership at Volkswagen has been put to rest, as shared by an anonymous source who is close to the matter.
The Volkswagen dispute between CEO Herbert Diess and the company’s works council has been resolved according to Automotive News.
As negotiations have gone on, the company has decided to keep Diess in his position as CEO with an increased focus on strategy, while Volkswagen Brand Head Ralf Brandstaetter is set to become a member of the management board.
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On Monday, a source told Reuters, “It is going in the direction that the dispute will be settled, and Diess will remain CEO.”
The dispute over Diess’s job apparently came in the wake of Diess reporting in September on the potential for a loss of up to 30,000 jobs in a shift to electric vehicles (EVs).
Diess has emphasized Volkswagen’s work to be done in order to catch up with the EV-leading automaker Tesla, which is set to receive final approval for its Gigafactory Berlin-Brandenburg in Germany any day now.
While unions are pushing to oust Diess, the majority stakeholder in Volkswagen Porsche-Piech has decided to back Diess amidst union pressures, according to statements made to the German press on Monday.