VW CEO’s future still uncertain, with talks ‘on a knife edge’ -Breaking
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BERLIN, (Reuters) – Volkswagen (DE)’s top executive committee failed to make a decision at Tuesday’s meeting about Herbert Diess, two sources familiar with the matter stated on Wednesday. Another source described the talks as “on a knifeedge.”
In recent weeks, Diess and German automaker’s strong union representatives have clashed about his management style. He also criticized the strategy for electrification. After he said that if it wasn’t managed properly, jobs could be at risk.
This topic is hot. It is at knife-edge. Due to sensitive subject matter, I cannot say more,” said one source.
A second source stated that “As anticipated, there was nothing new.”
Sources said that Reuters’ Tuesday meeting with the executive committee, which consists of eight members, would require more time for them to come up with a solution that all would be happy.
In the last six months, Europe’s biggest carmaker is still uncertain about its strategy and leadership. This has caused stock performance to trail that of competitors.
Its shares fell 18% in May compared to a 11% growth at BMW, Stellantis, and a 55% jump at Ford. There was also an 83% jump for Tesla (NASDAQ:), which Diess often cited as evidence that Volkswagen should accelerate its transition towards electrification.
The sources indicated that an agreement for the commission, which also includes Daniela Cavallo, head of works council, and Piech and Piech representatives, could hinge on Diess’ willingness to modify his management style.
According to Reuters, sources close to the negotiations indicated that a solution would be likely as part of a package which included the announcement of new board members and details about job prospects for employees. Also, a plan for investment for the group.
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