HAMBURG – Volkswagen CEO Herbert Diess will stay on in a slightly modified role, the German carmaker said on Thursday, ending weeks of uncertainty over his future. VW increase the five-year spending plan for Electric Car about half.
Rolf Brandstaetter, who took over Diess as head of Volkswagen’s core brand last year, will join the board and lead a new division called Volkswagen Passenger Cars from January. first, the company said in a statement.
He will also take over Volkswagen’s China business from Diess from August 1. However, Diess will be responsible for the company’s Cariad software unit.
“I can’t complain about the lack of accountability — I continue to feel completely responsible for the company,” says Diess.
Diess’ future has been questioned following clashes with Volkswagen’s powerful labor unions.
Diess’s management and communication style warns of tens of thousands of job losses in the coming years and regularly highlights the competitive threat from Tesla, infuriating the automaker’s working board, prompting weeks of negotiations over his future at the company.
At a press conference on Thursday, the head of the works council Daniela Cavallo said they were pleased with the outcome of the negotiations.
“I have no interest in us having these conflicts in public,” Cavallo said. “The conclusion of this planning round was clear: We have a solid and robust plan that we can all be proud of.”
The company’s supervisory board presented an annual update on the company’s five-year investment plan, outlining investments worth 159 billion euros ($180 billion) — up from 150 billion euros last year. – and involves the electrification of many Volkswagen locations across Europe.
Spending for tram will be increased by about 50% to 52 billion euros, compared with last year’s blueprint.
“We are becoming one the battery Manufacturers, charging infrastructure managers, software are playing a more dominant role… we are developing new businesses with an unbelievable dimension for us.” , Diess said, adding that the company expects to generate 20 billion euros in revenue by 2030 from its battery division alone.
The reorganization of the leadership team will see the Volkswagen Group delegate management of the individual car brands to focus on these overall business areas, said Diess.
The automaker also confirmed it expects its operating profit margin to be at the top of its target range of 6-7.5% for 2021.
