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Volkswagen to hand unions management board seat in reshuffle: sources


BERLIN/(Reuters) - will give labour leaders a management board as part of a broad agreement to win approval for as the German carmaker's new chief executive, sources said on Wednesday.

Europe's largest group is poised to replace this week with Diess, a cost-cutter hired in 2015 from as it seeks fresh impetus for its recovery from an emissions scandal.

Volkswagen's (VW) supervisory board will on Friday replace with Gunnar Kilian, of the carmaker's works council who works directly under labour boss Bernd Osterloh, four sources close to VW told

VW and the works council declined comment. Kilian's appointment, first reported by German magazine Der Spiegel, would give VW's labour representatives a direct say on cost cutting and strategy debates at executive board level.

Senior works council members last year had their salaries cut and bonuses suspended after public prosecutors investigated alleged overpayments at the carmaker, a move that labour leaders are blaming on Blessing, one source said.

Removing Blessing, who also oversees VW's slow-moving efforts to establish a new corporate culture, will be part of a broader reshuffle that could also affect other senior executives, another source said.

Diess is due to outline the group's new leadership structure in front of the supervisory board on Friday, two sources said.

The replacement of Mueller with Diess has been planned for Francisco Garcia Sanz, is also due to be ousted, Germany's Bild newspaper reported earlier on Wednesday.

The 59-year-old Diess looks set to retain his responsibilities as of the core VW if he becomes the group's next CEO, the second source said.

(Reporting by and Jan Schwartz; Editing by Edward Taylor/Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 16:29 IST