VW’s CEO is getting board support for its aggressive electrification plan

Herbert Diess, the head of the Volkswagen group, forced a vote of confidence over his leadership at Volkswagen after facing some setbacks due to his more aggressive attitude towards electric vehicles.

Now the Volkswagen board has confirmed that it supports him and his team on the aggressive electrification plan.

Diess came from BMW to Volkswagen in 2015 amid the Dieselgate scandal and began a widespread effort to reform the company.

Much of the effort revolves around the automaker’s electrification plan, and when it comes to electric vehicles, Diess has been candid about believing that “it will be a race with Tesla.”

There are rumors of internal setbacks over Diess’s electrification plans.

Earlier this month, the executive decided to push for a vote of confidence from the Volkswagen board by early renewal of his contract, which should not take place until 2023.

This week, the board announced that it supports Diess and his plan:

During today’s meeting, the Supervisory Board of Volkswagen AG discussed in detail the Together 2025+ strategy and the related redeployment of personnel. The Board has unanimously decided to give its full support to the strategy, in particular the company’s orientation towards electromobility and digitization.

The Supervisory Board has issued the following statement with regard to the resolution:

“Herbert Diess has had a major impact on Volkswagen since 2015. Without his commitment, the company’s transformation would not have been as consistent and successful. The Supervisory Board appreciates the determination and persistence that Herbert Diess has shown to move forward not only with technological change and the contribution to achieving climate goals, but also with the financial results of the company. In the coming years, the Volkswagen AG Board of Directors will implement the strategy with Herbert Diess at the top. The Chairman of the Board of Directors and his new management team have the full support of the Supervisory Board, not only when it comes to the new orientation towards electromobility and digitization, but also to increase efficiency and profitability in all brands and divisions of the group. . In this regard, it remains our common objective to combine the transformation with a high level of qualification and future opportunities for the employees of the Group and to organize the necessary staff reductions, taking into account existing programs, including in particular the demographic change. , through the proven human resources tools. “

Diess also noted:

“Together we are working rigorously forward with the greatest transformation in Volkswagen history. In the coming years, we will continue to invest in electromobility, digitization and battery technology, while substantially reducing fixed and material costs across the Group in all brands and regions to ensure the future viability of Volkswagen ”

As part of the meeting, Volkswagen also voted to retain control of Lamborghini and Ducati, while Bentley will be under Audi’s management.

Electrek’s Take

This is great news.

If there were managers and executives at VW who just hoped that Diess and his plan would disappear, then they will have to get on board or leave because he is here to stay.

Hopefully, we will now see wider support for electric vehicles from above at VW.

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