Herbert Diss will be reduced powers

Herbert Diss will be reduced powers

FineAuto

The general director of Volkswagen AG, Herbert Diess, who was predicted to be fired, will keep his job, Reuters reports, citing sources close to the German concern. Conflicts with other top managers and trade unions, who disagreed with Diess about accelerated electrification, will soon be settled. Diss will remain at the head of the concern, but his powers will be reduced, the agency’s interlocutors added.

Diss, who was appointed CEO of Volkswagen AG in April 2018, will relinquish some of his powers. After negotiations with the heads of the largest trade unions in Germany, it became known that Ralf Brandst├Ątter would become chairman of the council. Last year, Diss had to relinquish ownership of the Volkswagen brand to him after a controversy over cost-cutting plans. Diss himself will focus on identifying the auto giant’s strategy.

Diss’s future within Volkswagen AG was in question after he said in November that the manufacturer needs to accelerate its transition to fully green cars in order to remain competitive amid Tesla’s European expansion. In addition, he said that the concern could lose up to 30 thousand jobs if the focus on electric cars turns out to be too slow.

Last November, Greenpeace Deutschland and 20-year-old activist Clara Mayer filed a lawsuit against Volkswagen. In their opinion, the auto giant is not trying enough to counteract global climate change. The reason for the lawsuit was the claims put forward against Volkswagen to reduce the carbon footprint, which the concern rejected.

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