After weeks of friction between its chief executive officer and other key stakeholders, Volksgawen’s supervisory board resolved the extended conflict, endorsing CEO Herbert Diess in his role. As a result of this positive outcome, Volkswagen stocks incurred their largest rise in seven months.
The supervisory board sang Diess’ praises in an official statement, highlighting the enormous impact that the CEO had on the vehicle manufacturer since joining the company from BMW in 2015. It was further explained that: “Without his commitment, the transformation of the company would not have been so consistent and successful.”
This reconciliation between Volkswagen’s leadership resulted in a 7.6% surge in the company’s stock prices on the Frankfurt Stock Exchange. While the stock may still be 15% down from last year, this increase is Volkswagen’s biggest leap since May 18th.
Wolfgang Porsche and Hans Michel Piech, members of Volkswagen’s ownership family, explained in a joint statement that it is crucial for Diess and the rest of the leadership team to continue their collaboration and ensure that VW meets its financial goals. While Volkswagen aims to reduce fixed costs by 5% in 2023, the company is also looking to lower material costs by 7% in the next two years.
