Volkswagen Supervisory Board agrees on management positions and reorganization of Group Board
The Supervisory Board noted after today’s meeting: “Herbert Diess has had a major impact on Volkswagen since 2015. Without his commitment, the transformation of the company would not have been so consistent and successful. The Supervisory Board values the determination and persistence that Herbert Diess has exhibited in pressing forward not only with technological changes and the contribution to the achievement of climate goals, but also with the financial results of the company. In the upcoming years, the Board of Management of Volkswagen AG will implement the strategy with Herbert Diess at the top. The Chairman of the Board of Management and his new Board of Management team have the Supervisory Board’s full support not only when it comes to the new orientation towards electromobility and digitalisation, but also the increase of efficiency and profitability in all brands and parts of the Group. In this connection, it remains our joint objective to combine the transformation with a high level of qualification and future opportunities for the employees of the Group and – taking into account existing programmes – to organise the necessary reduction of staff, including in particular the demographic change, by means of the tried and tested personnel tools.”
With its decision today, the Volkswagen Group is demonstrating its determination to continue to press forward with the changes in the automotive sector at great speed. At the same time, the Group will continue to actively bring about the successful transformation of the company and its sites. With our forward-looking, solid planning in the transformation and conversion of the sites, we will set an example for the entire sector in the future as well”, said the Chairman of the Supervisory Board, Hans Dieter Pötsch.
Together we are rigorously pressing forward with the largest transformation in the history of Volkswagen. In the upcoming years, we will continue to invest in electromobility, digitalisation and battery technology and, at the same time, substantially reduce fixed costs and material costs throughout the Group in all brands and regions in order to ensure Volkswagen’s future viability”, said the Chairman of the Board of Management of Volkswagen, Dr. Herbert Diess.
There is total agreement between the Supervisory Board, the Board of Management and the employee representatives on the Group’s consistent orientation towards our strategic transformation objectives. In the course of the implementation, everyone involved continues to espouse the equal status of profitability and safeguarding of jobs, as well as the importance of training. This once again proves that we can best meet the great challenges that lie before us only by working together”, said the Group works council chairman, Bernd Osterloh.
In the medium term, the Group headquarters in Wolfsburg is to become the pioneering factory for the highly automated manufacture of electric vehicles. The future leading electric vehicle of the Volkswagen Passenger Car brand is to be built there on the basis of highly productive site conditions, which are also competitive in terms of costs. To this end, a project will be set up, similar to the Artemis project at AUDI, which bundles all activities from the development of the vehicle up to production.
Moreover, in view of the entire Group, the Group Board of Management and the Group works council will, by the end of the first quarter, agree on a plan to reduce the fixed costs by five percent by 2023 taking into account the existing programmes.
The material costs are to be reduced by seven percent in the next two years.
There is agreement on the Board that Lamborghini and Ducati will remain part of the Volkswagen Group. In the course of the reorganisation, it was further resolved that the Bentley brand will fall within the management responsibility of the Audi brand as of 1 March 2021 in order to allow for synergies to be achieved as part of the electrification strategy of the two premium brands.