Volkswagen has slashed salaries and suspended the bonuses of 14 members of its works council, including council head Bernd Osterloh, as officials investigate alleged overpayments. In May, it was made public that German prosecutors were looking into current and former executives at VW under suspicions that they paid the labor chief an “excessive” salary.
This was followed by a November raid, after which the council claimed the probe didn’t “target Osterloh.” Members specified that all payments were in line with Germany’s legal guidelines. The offices of VW’s chief financial officer, Frank Witter, and personnel director Karlheinz Blessing were also searched.
Curious as to whether Volkswagen’s management agreed to “excessive” payments of its chief labor representative, German prosecutors raided the carmaker’s headquarters. While a raid certainly sounds bad, it seems like the only way the country’s government bothers to acquire information from automotive manufacturers anymore.
This year alone, VW has been subjected to numerous raids relating to its diesel emission scandal and possible pricing collusion between BMW and Daimler. While one imagines a swarm of suits, backed by uniformed officers, as employees frantically shred documents, the frequency of such impromptu investigations probably just leaves staffers annoyed. I’m starting to think the German government likes showing up unannounced more than the country’s car builders enjoy illicit activities.
It’s hard not to look at the newly announced Volkswagen Beetle Dune and hear at the same time that Volkswagen will be saving $2 billion by cutting unnecessary trims and variants from their lineup.
I mean, it’s like they’re not even giving the little guy a chance.
Nonetheless, Bloomberg ( via Automotive News) reported Friday that Volkswagen will axe trims and variants of its cars to reduce complexity and cost from its lineup to help pay for the company’s massive emissions scandal. Bernd Osterloh, Volkswagen’s labor chief, told journalists Friday that the company has needed to trim some of its fat for a while, apparently.
The search to replace former Volkswagen chairman Ferdinand Piech may stretch into next year, Reuters is reporting.
Piech left Volkswagen in April after a showdown with Chief Executive Martin Winterkorn, who is still a candidate for the top position. Piech led VW for more than two decades and is the grandson of Ferdinand Porsche.
Interim chairman Berthold Huber is expected to remain in the position at least until the end of 2015.
The horse-trading between Volkswagen, the UAW and IG Metall that eventually led to both the UAW’s “voluntary union” and the new crossover’s production at Chattanooga isn’t quite over yet. Buried deep in VW’s announcement is the news that Volkswagen’s board member in charge of their global Works Council Bernd Osterloh will join the Volkswagen Group of Amerca’s Board of Directors.
Should Volkswagen’s workers in Chattanooga, Tenn. not be allowed to unionize — with or without the United Auto Workers — the automaker’s works council may veto any plan to expand VW’s presence in the Southeastern United States.