VW CEO's future still uncertain, with talks 'on a knife edge'

Reuters

Published Nov 24, 2021 04:51AM ET

Updated Nov 24, 2021 11:17AM ET

By Jan Schwartz

HAMBURG (Reuters) -Volkswagen's top committee did not make a decision on the future of Chief Executive Herbert Diess at a meeting on Tuesday, two sources with knowledge of the matter said on Wednesday, with one describing talks as "on a knife-edge."

Diess and the German automaker's powerful union representatives have clashed in recent weeks over his management style and electrification strategy, after he warned jobs could be lost if the process was not managed well.

"This topic is so hot, it is on a knife-edge. I can't say anything further," said one source, who declined to be named due to the sensitivity of the matter.

"As expected, there is nothing new," a second source said.

Sources told Reuters on Tuesday the supervisory board's eight-person executive committee would likely need more time to find a compromise that would satisfy all parties.

The ongoing uncertainty over leadership and strategy at Europe's largest carmaker has left its stock performance trailing behind competitors in the past six months.

Its shares are down 18% since May, compared with an 11% rise at BMW and Stellantis, a 55% increase at Ford, and an 83% jump at Tesla (NASDAQ:TSLA), whose success Diess has frequently raised as a sign of why Volkswagen (DE:VOWG_p) must transform more quickly towards electrification.