VW CEO remains upbeat despite union discontent

Diess is under fire for the company’s future product strategy

HAMBURG – Volkswagen CEO Herbert Diess, currently under heavy fire from unions over strategy, struck an upbeat tone at a recent manager meeting on talks over the firm’s five-year investment strategy, consisting of the future of its Wolfsburg plant.

According to a copy of his speech from a meeting over the last week, seen by Reuters, Diess said settlements with unions were going well, and also hailed the firm’s progression on everything from defeating U.S. rivals on independent driving to increasing sales in China.
VW was past the most awful of the supply chain crisis that has struck production this year, he included, with volumes starting to increase and next year’s outlook improving.

Costs brands were almost sold out next year and also order books were complete, Diess claimed – a sunnier outlook than the company provided at its third-quarter results a month earlier.

“You can see that my mood is very good, due to the fact that we have actually made a great deal of progress in the last couple of weeks,” said the CEO.

Diess’s setting at the helm of Europe’s biggest carmaker has been hanging by a thread in current weeks in the middle of stress over his management design and electrification approach.

Volkswagen’s supervisory board will satisfy following Thursday to agree on a five-year financial investment strategy.

Yet the lead-up to the meeting has actually been shadowed by uncertainty over whether Diess will certainly stay in his position and also arguments over the future of the Wolfsburg plant, which workers are afraid is being left behind in the transition to electrical cars.

A decision on whether Diess will certainly stay or go is anticipated by the end of this week, two resources close to negotiations who decreased to be called told Reuters, with the latest round of discussions on the matter taking place last weekend break.

On the concern of Wolfsburg, administration and the jobs council were discussing assembling the electrical ID.3 model at the plant – “it could certainly make good sense to create such a model,” Diess claimed.

The plant would certainly come to be unrecognizable by 2030, he guaranteed, with changes underway that would certainly make it “very affordable to Gruenheide” – Tesla’s giant electrical lorry manufacturing facility just hrs away which, pending last authorization, can kick into gear in December.

Diess has in recent weeks issued constant cautions about Tesla’s performance and rate contrasted to Volkswagen’s, sharing anxiety that the German carmaker will rapidly fall back by itself turf.