VW board committee to discuss CEO’s future on Tuesday

A Reuters report that cited Volkswagen’s supervisory board executive committee will meet on Tuesday to discuss the future of Chief Executive Herbert Diess, who is likely to remain at the helm of the carmaker despite tensions over his management style.

It was not clear whether any decision would be made at Tuesday’s meeting, to be attended among others by works council head Daniela Cavallo and representatives of the majority shareholder families, Hans Michel Piech and Wolfgang Porsche, the sources with knowledge of the negotiations said.

But any decision would come before a Dec. 9 supervisory board meeting to discuss Volkswagen’s five-year spending plan, the report said.

Diess and union representatives have clashed in recent weeks over his management style and electrification strategy, after the CEO warned at a previous supervisory board meeting that 30,000 jobs could be here lost if the process was not managed well.

The goal of current negotiations is to announce a series of new board members alongside details on job prospects for employees and investment plans for the group as a package, the report said.

A solution will likely include the appointment of Ralf Brandstaetter, CEO of Volkswagen’s namesake brand, to the management board, the people said, where he would take over responsibility for the mass-market brand group from Diess.

Diess last year ceded responsibility here for the Volkswagen brand to Brandstaetter after weeks of squabbling between the company’s powerful labour leaders and managers over the pace and scale of cost cutting plans.