Report: Monday Meeting Could See Volkswagen's Diess Replaced
A report last week in a German publication stated that Volkswagen Group was looking for someone new to take charge of its namesake brand. The new blood would come in the form of Porsche CEO Oliver Blume, sources said.
We’re now hearing there’s an “extraordinary” supervisory board meeting being held at VW today, and that the result could be current brand chief Herbert Diess being bounced from his role.
That’s according to sources who spoke to Reuters, though a switcheroo at the top wouldn’t mean Diess is gone for good. Diess, soiled but far from unseated by the lingering legal ramifications of the diesel emissions scandal, would retain his CEO role over the auto group, the source said.
As the automaker grapples with the financial burden imposed on it by the coronavirus pandemic and embarks on a pricey — and risky — electric vehicle push, the VW brand is in line for further streamlining. This will inevitably rub the company’s fearsome worker’s union the wrong way.
Over the weekend, a company spokesman confirmed to Reuters that talks regarding cost-cutting are underway, though nothing’s been decided on yet.
At the same time, Automotive News‘ German sister publication reported over the weekend that Diess took aside the company’s top managers late last week to press the need for significant cuts to R&D spending, investments, and fixed costs. The automaker is expected to continue depleting its existing cash pile until at least July, he reportedly said.
To deal with the present and ensure a stable foundation into the future, the publication said the VW brand will need to reduce material overhead by 20 percent.
Steve203 on Jun 08, 2020
Ever since the diesel scandal broke, I have been hoping that the financial pressure will force the company to unwind Piëch's empire building, get rid of the vanity brands, Lamborghini, Bentley, Ducati, Bugatti, and rationalize the redundant brands: Skoda and SEAT. There is no way the company should be running three brands, selling Golf and Tiguan derivatives in the same markets. Outside of Bentley, they bury the finances of the vanity brands so shareholders can't see how much money they are wasting.
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- ThomasKing The right spec has a lot to do with the value you get for your money. No matter what vehicle you're looking to buy, there are certain specs that are important when it comes to making sure you get the best bang for your buck. Also, you check this http://bestrvextendedwarranty.com/ and get more new things for warranty problem-solving. The 2022 Honda Civic Hatchback is an excellent example of a model that offers very high value while still giving you all the features and amenities that make passenger cars so enjoyable.
- Sayahh Toyota Century
- Probert Really needed more front and rear overhang.
- Varezhka Autozam AZ-1 or a Toyota Sports 800.
- Jeffro I can’t recall a visit to a Honda or Toyota dealership that wasn’t revolting to some degree. Why run yourself ragged going through the sleazy and greedy system store gauntlet, when you can purchase your luxury vehicle with just a few clicks on your smartphone?