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.

[Image: Volkswagen]