The future of Herbert Diess is still in the balance. The current CEO of the German group has ended up in the crosshairs of the works council and the unions after the possible cuts in the workforce due to the consequences of a transition to electricity that is not efficient enough and despite the denials and a more relaxed internal climate, the The Group’s steering committee has not yet made a decision on the future of its CEO.
Sources inside the company would have defined the situation as “hanging on the razor’s edge” as reported by Automotive News Europe. That it was a difficult situation was clear to everyone and even more so after the clashes with the works council, Diess’s figure seemed to have been cornered. In recent months it was the manager himself who tried to force his hand, asking for an early renewal of his contract to complete the industrial plan and launch new objectives in terms of electrification. The clash with Daniela Cavallo and the workers put him in an awkward position. To continue driving Volkswagen, Diess could be faced with a choice: to change his managerial style and the approach to certain situations to satisfy those who would like to remove him. Sources close to the negotiations said a resolution would likely be part of a package that would include the announcement of new board members, details on employment prospects for the employees and investment plans for the group.
A more important role could be entrusted to Ralf Brandstaetter, CEO of the Volkswagen brand: as we had anticipated in recent days, the current number one of the VW brand would assume the responsibilities of the brands engaged in mass markets, taking over the sphere of influence that currently belongs to Diess. The state of uncertainty would also have influenced the results of the last few months, most recently the declining ones recorded at European level in October.
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