VW CEO Diess said to push for contract extension amid labor opposition

VW CEO Diess said to push for contract extension amid labor opposition

FRANKFURT — Volkswagen Group CEO Herbert Diess has requested the households who management a majority voting stake to again a contract extension in a bid to interrupt a impasse on the automaker, two individuals acquainted with the matter mentioned.

The attraction for help from the Piech and Porsche households comes after Diess was compelled to relinquish accountability for the VW model in June to stay as group CEO.

“He’s bringing the problem to a head,” one of many sources instructed Reuters on Friday.

Volkswagen declined to remark. The proudly owning households declined to remark, the corporate’s works council and the German state of Decrease Saxony, which owns a VW stake, declined to remark.

Diess’ contract is because of expire in 2023 after he was appointed head of the VW model in 2015 and group chief government in April 2018.

German firms are likely to deliberate over contract extensions solely a yr forward of their renewal, however the attraction comes after Diess struggled to win backing for key reforms.

These included installing two allies Arno Antlitz as chief financial officer and Thomas Schmall as chief procurement officer on the management board, three sources instructed Reuters.

Diess has met opposition to those appointments from VW’s highly effective labor bosses who management half of the 20 seats on the corporate’s supervisory board, or board of administrators.

If labor leaders group up with Decrease Saxony, which controls a 20 % stake, they’ll veto important choices.

Somewhat than approving every particular person appointment, the labor leaders insist on approving a “bundle resolution” that’s “harmonious,” two individuals acquainted with the deliberations mentioned.

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