Volkswagen Mulls Board Change That Could See Labour Chief Move On
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Volkswagen is considering a change to its supervisory board that could lead to the replacement of Bernd Osterloh, the head of its powerful works council who clashed with CEO Herbert Diess last year, sources familiar with the matter said on Thursday.
Osterloh’s departure, if confirmed, could weaken resistance to faster and more drastic restructuring at the German carmaker.
Last year, the 64-year-old opposed an attempt by Diess to extend his contract as the CEO strives to cut costs and free up resources to invest more in electric vehicles.
One source said Osterloh had been offered the position of personnel director at Traton, Volkswagen’s truck unit that was spun off and separately listed in 2019.
Osterloh’s departure could weaken resistance to faster and more drastic restructuring at the German carmaker.
A second source said the group was considering proposing a new labor representative to its board but did not give a name.
The company, its main shareholder Porsche SE and the works council declined to comment.
Five sources in total said Volkswagen would in the near future debate an important change in the composition of its supervisory board, adding no final decisions had been taken.
The move follows a surge in Volkswagen’s shares, as investors warm to its efforts to overtake Tesla and become a world leader in electric cars.
The shares have risen by more than half in value so far this year, giving the company a market value of 132 billion euros ($159 billion).
Osterloh has been a member of Volkswagen’s supervisory board since 2005. Labour representatives make up half the board, under Germany’s system of corporate governance.
Should Osterloh leave the supervisory board, as would be required should he take up an executive role at Traton, the most likely candidate to replace him would be deputy works council head Daniela Cavallo, the sources said.
Any nomination would be subject to a confirmatory vote by shareholders at the annual meeting in July.
Questions & Answers
Q.Why is Volkswagen considering a change to its supervisory board?
Why is Volkswagen considering a change to its supervisory board?
Volkswagen is considering a change that could lead to the replacement of Bernd Osterloh, the head of its works council. This move comes as the company seeks to accelerate restructuring efforts and invest more heavily in electric vehicles.
Q.How could Bernd Osterloh's departure affect Volkswagen's operations?
How could Bernd Osterloh's departure affect Volkswagen's operations?
If Bernd Osterloh leaves, it could weaken resistance to faster and more drastic restructuring plans within the German carmaker. He previously clashed with CEO Herbert Diess over cost-cutting and investment in electric vehicles.
Q.What position has Bernd Osterloh reportedly been offered?
What position has Bernd Osterloh reportedly been offered?
One source familiar with the matter stated that Bernd Osterloh has been offered the role of personnel director at Traton, Volkswagen’s truck unit. Traton was spun off and separately listed in 2019.
Q.Who is the most likely candidate to replace Bernd Osterloh on the supervisory board?
Who is the most likely candidate to replace Bernd Osterloh on the supervisory board?
Should Bernd Osterloh leave the supervisory board, sources suggest the most likely candidate to replace him would be Daniela Cavallo, who is the current deputy head of the works council.
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