Head of Volkswagen will leave the post of head of the supervisory board of two brands

Head of Volkswagen will leave the post of head of the supervisory board of two brands

April 30, 2021 0 By autotimesnews

VW Group CEO Diess will step down as head of the board of directors of the Seat and Skoda brands, as a result of which they expressed concern about their future status.

The Skoda and Seat brands fear they will lose influence in the group as Volkswagen Group CEO Herbert Diess plans to step down as head of their supervisory boards, German media reported. Diess plans to focus on building a stronger software development team, according to Handelsblatt.

Reuters also reported that Diess will step down as chairman of the two subsidiaries of the VW Group, citing someone familiar with the matter. This has raised concerns among managers at Skoda and Seat, as his departure would mean less focus on the two brands within the VW Group, downgrading their status.

The VW Group is looking to cut costs to redirect funding to software and electric vehicle development, and wants to link Skoda and Seat more closely to its core Volkswagen brand to reduce competition between them. VW brand executives have said in the past that Skoda has an unfair price advantage as it can lower costs by leveraging technology developed by the VW brand.

“If three or four brands with similar products compete for the same target group, then all brands suffer,” Diess told the Suddeutsche Zeitung in 2019.

Reuters reports that Dissa will be replaced by Thomas Schmall, head of technology at Seat, and Murat Axel, head of purchasing at the Volkswagen council, at Skoda.