VW CEO Herbert Diess Early Contract Extension Shot Down

Volkswagen’s executive committee decided to put off its decision on extending chief executive Herbert Diess contract extension during its December 1st meeting.

Earlier this week Diess was reportedly looking for a vote of confidence from Volkswagen’s board to advance his contract extension which is not due until 2023. According to sources familiar with the matter, it was reported that  key stakeholders were against an early extension (via Reuters): “The executive committee will not be pressured into a decision, there is no rush.”

After joining Volkswagen in 2015, Diess was removed from his position of CEO and replaced with chief operating officer Ralf Brandstätter. Diess currently serves as chief executive of the VW Group. Prior to the groups meeting on Tuesday, a spokesman for Porsche Automobil Holding stated that “The families continue to support Diess.”

The deferred decision comes on the heels of Diess’ blog release regarding a workshop he created called “Mission T.” A workshop attended by 31 senior executives from Volkswagen, Audi, and Porsche, revolved around how the group can catch up with Tesla. Diess also used the blog post to explain how he has adjusted his management style to adapt to Volkswagen.

However, the display of advancement in management technique and the “Mission T” workshop didn’t get him the vote of confidence he was looking for.

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