VW Group’s Supervisory Board Extends Chairman Herbert Diess’ Contract. Other Employees Face an Uncertain Future

“A successful outcome will accordingly require sustainable concepts for transforming the workforce and training employees in a broad range of fields.”

Dr. Herbert Diess will stay as head of the Volkswagen Group until October 2025. On Friday, the Supervisory Board of Volkswagen AG approved a new service contract with a corresponding term. Dr. Diess will remain the Chairman of the Board of Management until his 67th birthday. The Supervisory Board was also shown Strategy 2030* that will be revealed on 13 July.

The Group Board of Management presented this plan aimed at maintaining the Group’s role as a global leader in an automotive industry shaped by e-mobility and software. It’s called for the moment “New Auto.” Its essence acknowledges the obvious – autonomous driving in combination with other software-driven mobility services, are projected to lead to an automotive market doubling in size in the next 10 years.

The entire industry like VW is pursuing standard platforms for software and vehicle components to provide benefits in terms of costs and quality as well as economies of scale in the same way. This comprises cross-brand battery, recharging and mobility via connected car aspects with as much commonization and customization as possible.

One crucial aspect of Strategy 2030 is touted by the VW Group as “People & Transformation.” In an attempted, but necessary, move away from a company comprised of conventional engineers and workers with varying skills, VW sees new areas encompassed by an emerging mobility company. Individual opportunities for change for existing employees will be a factor for success – or at least survival. This is just a German euphemism for stating the obvious – the old Works Council and Management dance supporting rigid categories of traditional jobs with guarantees of employment in old-style manufacturing, engineering and support areas will have to keep time to a different electronically generated score.

“A successful outcome will accordingly require sustainable concepts for transforming the workforce and training employees in a broad range of fields. The Supervisory Board sees the works council and co-determination in the Volkswagen Group as providing a clear advantage in this respect, making the reshaping of the company a joint process,” according to VW.

* AutoInformed on Mobility Services, Connected Cars and Autonomous Vehicles

• New LG and Magna Joint Venture in Powertrain Electrification
• Groupe Renault and Faurecia to Work on Hydrogen Storage
• Volkswagen Will Hasten Its Transition to a Mobility Company
• Ford Buys Electriphi to Provide Ford Pro Commercial Customers with Charging and Energy Management
• California Proposes Strict Greenhouse Gases, Fuel Economy Rules for 2030
• Groupe Renault Reveals A New Strategy for China
• Ford Europe is Planning on Shifting Passenger Cars to All EVs by 2030, Commercial Vehicles Will Eventually Follow
• Volvo to Only Sell EVs Online as a Pure EV Company by 2030
• Mazda “Sustainable Zoom-Zoom 2030.” We’re Not Kidding
• Stellantis Ups Electrification Strategy by $35.54 Billion