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October 27, 2021 04:56 AM

VW CEO Diess cancels U.S. trip to join staff meeting

Labor boss criticized planned meeting with Wall Street investors

Reuters
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    VW worker Wolfsburg
    REUTERS

    VW production in Wolfsburg.

    FRANKFURT -- Volkswagen Group CEO Herbert Diess has cancelled a trip to meet investors in the U.S. and will take part in a Nov. 4 staff meeting instead, a company spokesperson said on Wednesday, in a bid to defuse conflict with frustrated labor representatives.

    Earlier, VW's works council head took aim at Diess, accusing him of not taking an interest in workers' concerns and rekindling a long-standing conflict between the two sides.

    Diess made the commitment to be present at the staff meeting, the first in about two years, to the group's supervisory board at a meeting on Wednesday, two people familiar with the matter told Reuters.

    Emotions at the automaker are running high ever since Diess told a supervisory board meeting last month that the company could lose 30,000 jobs if it transitioned too slowly to electric vehicles.

    The comments by Daniela Cavallo, who became VW's works council head this year and replaced Bernd Osterloh, a fierce opponent of Diess, mark a fresh low point in a relationship that has for years been fraught with conflict.

    They were made in response to news that Diess, who is aggressively pushing VW to catch up and overtake electric-car maker Tesla, would not take part in the meeting scheduled and instead meet with U.S. investors and politicians.

    "Herbert Diess is preferring Wall Street investors over the company's workforce -- this behavior is unprecedented in the history of our group and once again shows that even in times of crisis the group chief executive has no empathy or sense for the situation of the workforce," Cavallo had said.

    "He is simply not taking an interest in the concerns of the workforce," she added.

    A VW spokesperson had earlier said Diess' U.S. trip had been planned for some time and could not be rescheduled at short notice. Diess had invited staff at VW's Wolfsburg plant to a Q&A session on Oct. 28, the day of third-quarter results, instead.

    But this event will be cancelled now that Diess is taking part in the employees' meeting next week.

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