US economy

Volkswagen's Diess to remain CEO, says source

© Reuters. FILE PHOTO: Volkswagen CEO Herbert Diess looks on during his visit to Volkswagen’s electric car plant in Zwickau, Germany, June 23, 2021. REUTERS/Matthias Rietschel/File Photo

HAMBURG (Reuters) -The dispute between Volkswagen (DE:) CEO Herbert Diess and the company’s powerful works council seems to have been resolved, a source close to the matter said, potentially ending the latest leadership tussle at Europe’s top carmaker.

After protracted negotiations a solution has been found under which 63-year-old Diess is likely to keep his job, the source said.

“It is going in the direction that the dispute will be settled and Diess will remain CEO,” the source said, adding that VW brand chief Ralf Brandstaetter is slated to join the management board – confirming what sources told Reuters last month – while Diess will focus on strategy.

Volkswagen and Porsche SE, the company’s largest shareholder, declined to comment.

Diess’s future has hung in the balance since he mentioned the risk of far-reaching job cuts in September, burdening the carmaker’s efforts to draw up a five-year investment plan that will be discussed by the supervisory board on Thursday.

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