Berlin: The Volkswagen top committee did not make a decision about the future of the Herbert Died chief executive at the meeting on Tuesday, two sources with knowledge about it said on Wednesday, with one who described the conversation as “above the knife.” Diess and the German car workers representatives have clashed in recent weeks over the management style and electrification strategy, after he warns work can be lost if the process is not well managed.
“This topic is very hot, it’s on the edge of the knife.
I can’t say anything anymore,” said a source, who refused to be named because of the sensitivity of the problem.
“As expected, nothing new,” said the second source.
The source told Reuters on Tuesday the Eight Executive Committee of the Supervisory Board would likely need more time to find a compromise that would satisfy all parties.
The undertaking uncertainty of leadership and strategies in the largest car maker in Europe has left the performance of its shares behind competitors in the past six months.
The shares fell 18% since May, compared with an 11% increase in BMW and Stelllantis, an increase of 55% in Ford, and a leap of 83% in Tesla, whose success has often been raised as a sign that Volkswagen must change more quickly to electrification.
Agreement about the Committee – which includes the work of the Board of Board Daniela Cavallo and representatives for the majority shareholders of Porsche and Piech’s family – can depend on whether Diess agrees to change its management style, the source said.
The source close to negotiations say the resolution is likely to come as part of the package including the announcement of new board members, details about the work prospects for employees, and investment plans for the Group, Reuters reported on Monday.