Volkswagen’s supervisory board on Monday said CEO Herbert Diess had its complete support as he leads a new executive team to transform the German automaker but stopped short of bringing forward a contract extension.
In a power struggle resulting in a board meeting on Monday, Diess had demanded an early contract extension and more support for his reform efforts from the automaker’s non-executive board. He met resistance from powerful directors who represent employees and unions.
Following the meeting, the non-executive supervisory board also said the automaker would cut overhead costs by 5% and procurement costs by 7% during the next two years.
Diess had sought to reduce costs in Germany to free up resources for a mass electrification push and to transform the automaker into a tech company modeled on Tesla.
That resulted in a clash with Bernd Osterloh, Volkswagen’s chief labour representative, over issues such as appointments to the management board and whether to extend Diess’s contract beyond 2023.
The non-executive board, where Osterloh is a member as well, said it had unanimously voted to support the transformation to e-mobility and digital technologies.
“Over the coming years, the executive board will implement this strategy under Herbert Diess’ leadership,” said the supervisory board.
The statement said Arno Antlitz would become group finance chief, succeeding Frank Witter, who would quit in June next year as announced earlier.
Thomas Schmall would become a board member in charge of a recently created technology division from January 1
Also from next year, Murat Aksel, the head of procurement at the Volkswagen car brand will also take on the same role for the whole group.
