Volkswagen AG extended the contract of Herbert Diess’s CEO for two years, giving the boss new protection from an established carmaker overseeing the most aggressive push for electric vehicles.
Diess, 62, will serve as CEO until October 2025, the supervisory board said Friday. President Hans Dieter Poetsch praised the transformation overseen by the executive because it merged with VW before the diesel emissions scandal erupted and reached the main job, still paying 30 billion euros in damages ($ 35.6 billion).
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“The Supervisory Committee believes that under the guidance of Dr. Diess, the conditions will be perfect for the successful development of the entire company,” Poetsch, 70, said in a statement.
The extension marks a victory for the former BMW AG executive twice last year, as he was successful in securing an early extension of his contract. Internal tensions were lifted in December over a broader agreement between key players on cost cuts and other appointments of senior officials.
Diess, known for his hard-nosed management style, has clashed frequently with VW’s powerful unions since joining the German Giant industry in 2015, a few weeks before the company scammed its emissions tests.
Last year people spread the disagreement to reduce costs and Diess intended to overcome what he described as a “built-in structure” at Volkswagen’s headquarters in Wolfsburg. The new contract enhances Tesla Inc.’s efforts to boost the group’s software operations and surpass it as a world leader. electric cars.
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VW’s financial performance in recent quarters favored Diess’s extension. The manufacturer has had quite a bit of resistance in the midst of the Covid-19 Pandemic and last Friday reported preliminary gains in the first half of this year. Ordinary shares rose 6% to 65% this year.
VW’s expansion of EVs this year “should be a step towards overcoming Tesla’s EV crown in 2023 and software recovery by 2025,” Michael Dean, Bloomberg Intelligence Analyst, said in a report. valuation gap versus Tesla “.
VW will provide detailed information on its strategy until 2030 next week. It will include a new development site near its Wolfsburg headquarters for 800 million euros, Daniela Cavallo, head of VW’s business committee, Diess and chief of staff Gunnar Kilian said in a letter to staff. The budget will be included in next year’s investment review, which will be presented this fall.
The updated strategy will also address new initiatives for battery cell manufacturing, according to the letter. Earlier this year, VW announced plans to build six battery-powered plants in Europe alone.
This story was published without a change in text from a wireless agency feed.