VW's top board moves up leadership meeting to Monday, report says

VW CEO Diess wins board support for reforms

MUNICH — Volkswagen Group CEO Herbert Diess gained backing from the automaker’s supervisory board to proceed his reforms on the automaker however did not get an extension of his contract.

An announcement from the supervisory board Monday mentioned members “unanimously resolved” to present its full help to Diess’s technique, “particularly the orientation of the corporate in the direction of electromobility and digitalization.”

“Over the approaching years, the chief board will implement this technique underneath Herbert Diess’ management,” the board mentioned.

Diess bought the board’s help for his candidate for the job of CFO and for his want to separate the automaker’s procurement and parts divisions.

The board additionally mentioned that VW would reduce overhead prices by 5 p.c and procurement prices by 7 p.c over the subsequent two years.

Key factors from the board’s assertion have been:

  • Lamborghini and Ducati will stay a part of VW Group. A divestment of the Italian luxurious manufacturers had been under discussion to streamline the group’s model portfolio. The assertion gave no dedication to Bugatti. Studies have mentioned VW is in talks to promote Bugatti to Croatian efficiency electric-car specialist Rimac.
  • Bentley might be positioned underneath Audi’s management. At the moment Porsche CEO Oliver Blume has total responsbility for Bentley. Automobilwoche, a sister publication of Automotive Information Europe, first reported the plan in October. Bentley’s future lineup up will share extra expertise with Audi, together with utilizing the Artemis technology project that’s creating a successor for Audi’s A8 flagship sedan to additionally develop a full-electric automotive for Bentley.
  • VW’s house plant in Wolfsburg, Germany, will develop into “the pioneering manufacturing unit” for the extremely automated manufacture of electrical automobiles. VW model’s EV flagship might be constructed there. The choice meets a requirement by the automaker’s German labor bosses.
  • Arno Antlitz, presently Audi finance boss, will succeed Frank Witter as VW Group CFO. Antlitz’s promotion to the VW Group submit was initially opposed by labor bosses as a result of he upset unions in his earlier job as finance chief for the primary VW automotive model, sources have mentioned.
  • The group’s procurement and parts features might be separated.
  • Thomas Schmall could have a brand new administration board perform accountable for expertise. Schmall is presently CEO of Volkswagen Group Elements. He has gained reward for main a change to electrification on the automaker’s parts vegetation in Germany.
  • Murat Aksel will take over the buying division. He’ll proceed as VW model buying boss. “The separation of buying and parts is supposed to permit Aksel to pay attention totally on optimizing the fabric prices all through the group,” VW mentioned in its assertion.

Diess had sought to decrease prices in Germany to release assets for a mass electrification push and to rework the 83-year previous automaker right into a tech firm modeled on Tesla.

That led to a conflict with Bernd Osterloh, VW’s chief labor consultant, over points together with appointments to the administration board and whether or not to increase Diess’s contract past 2023.

Diess had requested the board to increase his contract to assist win backing for his reforms. Unions and a few board members mentioned it was too early to debate the problem.

Reuters and Bloomberg contributed to this report.

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