Herbert Diess, CEO of the Volkswagen Group, aims to transform the German giant from top to bottom to become one of the world’s largest electric car manufacturers. However, his reforms have met with opposition from some multinational sectors, which are opposed to such an accelerated transition.
Due to this situation, Diess recently forced a vote of confidence on his leadership, asking the Volkswagen board for an early extension of his contract, which expires in 2023. Finally, the executive and his team have received the company’s support. They will continue with his aggressive electrification plan, through which Diess wants to stand up to Tesla.
“During its meeting today, the Supervisory Board of Volkswagen AG discussed the Together 2025+ strategy and, in connection with this, a realignment of staff. The Council unanimously agreed to give its full support to the system, particularly to the company’s orientation towards electromobility and digitization.
Herbert Diess has had a significant impact on Volkswagen since 2015. Without his commitment, the transformation of the company would not have been as consistent and successful. The Supervisory Board appreciates the determination and perseverance that Herbert Diess has shown in moving forward with technological changes and contributing to the achievement of climate goals and the company’s financial results.
In the coming years, the Volkswagen AG Board of Directors will implement Herbert Diess at the helm. The Chairman of the Board of Directors and the new team of the Board of Directors have the full support of the Supervisory Board not only about the new orientation towards electromobility and digitization but also to the increase of efficiency and profitability in all the brands and parts of the Group”.
At this same meeting, they also voted in favor of maintaining control of Ducati and Lamborghini, placing Bentley under Audi’s tutelage. Concerning the Supervisory Board’s decision, Diess stated the following: “Together we are rigorously moving towards the most extensive transformation in Volkswagen’s history. In the coming years, we will continue to invest in electromobility, digitization, and battery technology, while at the same time substantially reducing fixed costs and material costs across the Group, across all brands and regions to ensure the future viability of Volkswagen.”