Volkswagen CEO Herbert Diess in hot water
11-04-21, 03:12 AM
#1
Lead Lap
Thread Starter
Volkswagen CEO Herbert Diess in hot water
I guess this is why he's been kissing up to Elon? 
EXCLUSIVE Volkswagen committee to discuss future of CEO Diess - sources
HAMBURG, Nov 3 (Reuters) - A specially convened Volkswagen (VOWG_p.DE) committee will discuss the future of CEO Herbert Diess, three people familiar with the matter said on Wednesday, a week after a longstanding conflict with labour representatives flared up again.
The planned meeting of the rarely-summoned mediation committee of VW's supervisory board comes in response to tensions between management and its works council, after sources said Diess told a recent meeting of the board that 30,000 jobs were at risk as part of the group's electric vehicles push. read more
The sources, who spoke on condition of anonymity, could not confirm when the meeting would take place.
"Constructive and confidential discussions are currently being held. Possible results will be communicated in due time," said a source close to the supervisory board.
The mediation committee consists of Hans Dieter Poetsch, supervisory board chairman and CEO of Volkswagen's largest shareholder Porsche SE (PSHG_p.DE); Stephan Weil, state premier of the German state of Lower Saxony, which owns a fifth of the voting rights of Volkswagen; works council leader Daniela Cavallo; and Joerg Hofmann, head of Germany's largest trade union IG Metall.
Spokespeople for Diess, Volkswagen's supervisory board and Porsche SE all declined to comment.
Shares in Volkswagen extended losses and fell as much as 4.7% following the news.
The escalation of the tussle over Diess's future underscores the fragile balance of power at the world's second-largest carmaker, pitting Diess' ambition to make Volkswagen more competitive with Tesla (TSLA.O) against Germany's influential trade unions.
Diess, who took the helm at the carmaker in 2018 as the third CEO since the Dieselgate emissions scandal broke in 2015, has been repeatedly criticised for his demanding management style as he seeks to overhaul the company.
His current contract, extended early during the summer, runs until October 2025.
Diess, 63, has been singling out Tesla's success as a benchmark for Volkswagen, hailing the efficiency and lean management of entrepreneur Elon Musk's company, which has drawn the ire of labour representatives who fear this will lead to major job cuts.
Underscoring his admiration for Musk's achievements, Diess even invited him to address 200 VW executives via a video call during a recent company meeting. read more
When Volkswagen released lower-than-expected third-quarter results last week, Diess said that headcount reduction was needed to make Volkswagen competitive with regard to fast growing EV rivals.
The planned meeting of the rarely-summoned mediation committee of VW's supervisory board comes in response to tensions between management and its works council, after sources said Diess told a recent meeting of the board that 30,000 jobs were at risk as part of the group's electric vehicles push. read more
The sources, who spoke on condition of anonymity, could not confirm when the meeting would take place.
"Constructive and confidential discussions are currently being held. Possible results will be communicated in due time," said a source close to the supervisory board.
The mediation committee consists of Hans Dieter Poetsch, supervisory board chairman and CEO of Volkswagen's largest shareholder Porsche SE (PSHG_p.DE); Stephan Weil, state premier of the German state of Lower Saxony, which owns a fifth of the voting rights of Volkswagen; works council leader Daniela Cavallo; and Joerg Hofmann, head of Germany's largest trade union IG Metall.
Spokespeople for Diess, Volkswagen's supervisory board and Porsche SE all declined to comment.
Shares in Volkswagen extended losses and fell as much as 4.7% following the news.
The escalation of the tussle over Diess's future underscores the fragile balance of power at the world's second-largest carmaker, pitting Diess' ambition to make Volkswagen more competitive with Tesla (TSLA.O) against Germany's influential trade unions.
Diess, who took the helm at the carmaker in 2018 as the third CEO since the Dieselgate emissions scandal broke in 2015, has been repeatedly criticised for his demanding management style as he seeks to overhaul the company.
His current contract, extended early during the summer, runs until October 2025.
Diess, 63, has been singling out Tesla's success as a benchmark for Volkswagen, hailing the efficiency and lean management of entrepreneur Elon Musk's company, which has drawn the ire of labour representatives who fear this will lead to major job cuts.
Underscoring his admiration for Musk's achievements, Diess even invited him to address 200 VW executives via a video call during a recent company meeting. read more
When Volkswagen released lower-than-expected third-quarter results last week, Diess said that headcount reduction was needed to make Volkswagen competitive with regard to fast growing EV rivals.
11-04-21, 07:47 AM
#4
Lexus Fanatic
11-04-21, 08:52 AM
#5
Wow, things are in flux at VW. Tesla has proven to be quite the disrupter...
11-04-21, 09:07 AM
#6
Lexus Champion
Yeah I was thinking he must of been drunk to end up in vat of boiling water. One of those double take moments
11-04-21, 09:59 AM
#7
Lexus Fanatic
This is like blaming the person that pulled the fire alarm instead of dealing with the fire.
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11-04-21, 10:24 AM
#8
Lexus Fanatic
iTrader: (20)
germany's economy is based on a collusion between government, huge corporations, and unions, in a deadly embrace. they all like it because they believe it brings stability, protection, and clout. Big government HATES small businesses because they're not easily controlled. Last i checked, california alone creates more new businesses than ALL of europe. one of those startups? Tesla!
these innovative startups can rise and disrupt, and the german (and other) 'big govt'/'big corp'/'big union' troikas hate that.
Stay tuned.
11-04-21, 10:35 AM
#9
Lexus Test Driver
you're exactly right. If they get rid of diess, the next person will come to the exact same conclusions if they have a brain and are honest.
germany's economy is based on a collusion between government, huge corporations, and unions, in a deadly embrace. they all like it because they believe it brings stability, protection, and clout. Big government HATES small businesses because they're not easily controlled. Last i checked, california alone creates more new businesses than ALL of europe. one of those startups? Tesla!
these innovative startups can rise and disrupt, and the german (and other) 'big govt'/'big corp'/'big union' troikas hate that.
Stay tuned.
germany's economy is based on a collusion between government, huge corporations, and unions, in a deadly embrace. they all like it because they believe it brings stability, protection, and clout. Big government HATES small businesses because they're not easily controlled. Last i checked, california alone creates more new businesses than ALL of europe. one of those startups? Tesla!
these innovative startups can rise and disrupt, and the german (and other) 'big govt'/'big corp'/'big union' troikas hate that.
Stay tuned.
11-04-21, 10:56 AM
#10
Lexus Fanatic
germany's economy is based on a collusion between government, huge corporations, and unions, in a deadly embrace. they all like it because they believe it brings stability, protection, and clout. Big government HATES small businesses because they're not easily controlled. Last i checked, california alone creates more new businesses than ALL of europe. one of those startups? Tesla!
these innovative startups can rise and disrupt, and the german (and other) 'big govt'/'big corp'/'big union' troikas hate that.
Stay tuned.
these innovative startups can rise and disrupt, and the german (and other) 'big govt'/'big corp'/'big union' troikas hate that.
Stay tuned.
Change is hard. Also I think a big part of it is they are worried VW will build new factories with non-union workers, basically copy what Tesla is doing. Hard to imagine Diess survives his job much longer.
11-04-21, 03:24 PM
#12
you're exactly right. If they get rid of diess, the next person will come to the exact same conclusions if they have a brain and are honest.
germany's economy is based on a collusion between government, huge corporations, and unions, in a deadly embrace. they all like it because they believe it brings stability, protection, and clout. Big government HATES small businesses because they're not easily controlled. Last i checked, california alone creates more new businesses than ALL of europe. one of those startups? Tesla!
these innovative startups can rise and disrupt, and the german (and other) 'big govt'/'big corp'/'big union' troikas hate that.
Stay tuned.
germany's economy is based on a collusion between government, huge corporations, and unions, in a deadly embrace. they all like it because they believe it brings stability, protection, and clout. Big government HATES small businesses because they're not easily controlled. Last i checked, california alone creates more new businesses than ALL of europe. one of those startups? Tesla!
these innovative startups can rise and disrupt, and the german (and other) 'big govt'/'big corp'/'big union' troikas hate that.
Stay tuned.
What's NOT "deadly" about the American system of unrestrained vulture capitalism with no safeguards for workers? Do you really believe the average American is faring better than the average German worker? If you think that question is irrelevant to judging the two countries' economic models, it's fair to ask: Who does "the economy" exist for if not for the citizens? And speaking of "deadly," in case you didn't notice, American role model Tesla with its triumphant Full Self-Crashing technology isn't exactly pristine clean on that score, either.
Also, which is it? Is Tesla is the role model of a startup? Or is California the role model for a job incubator? Because the head of Tesla is now squawking that he can't abide by the laws of California. So choose one idol to hold up as superior to VW and Germany, because apparently you can't like 'em both.
11-04-21, 03:34 PM
#13
Lexus Champion
This post is a bunch of right-wing tropes strung together into one suicidal pro-corporate propaganda stew.
What's NOT "deadly" about the American system of unrestrained vulture capitalism with no safeguards for workers? Do you really believe the average American is faring better than the average German worker? If you think that question is irrelevant to judging the two countries' economic models, it's fair to ask: Who does "the economy" exist for if not for the citizens? And speaking of "deadly," in case you didn't notice, American role model Tesla with its triumphant Full Self-Crashing technology isn't exactly pristine clean on that score, either.
Also, which is it? Is Tesla is the role model of a startup? Or is California the role model for a job incubator? Because the head of Tesla is now squawking that he can't abide by the laws of California. So choose one idol to hold up as superior to VW and Germany, because apparently you can't like 'em both.
What's NOT "deadly" about the American system of unrestrained vulture capitalism with no safeguards for workers? Do you really believe the average American is faring better than the average German worker? If you think that question is irrelevant to judging the two countries' economic models, it's fair to ask: Who does "the economy" exist for if not for the citizens? And speaking of "deadly," in case you didn't notice, American role model Tesla with its triumphant Full Self-Crashing technology isn't exactly pristine clean on that score, either.
Also, which is it? Is Tesla is the role model of a startup? Or is California the role model for a job incubator? Because the head of Tesla is now squawking that he can't abide by the laws of California. So choose one idol to hold up as superior to VW and Germany, because apparently you can't like 'em both.
11-04-21, 03:38 PM
#14
Lead Lap
Thread Starter
I think this story is being mischaracterized as "VW wants to fire Diess because he's pro-EV and they aren't" when that isn't the case, it's because he made a public announcement that "30,000 people would lose their jobs if we don't hurry up with electrification." The issue isn't the EV's, it's the fact that his statement came across almost as a threat to current employees, which is a big no-no for unions.
Basically, if he hadn't run his mouth he wouldn't be under scrutiny. With or without Diess, VW will still go all-out on EV's.
