No Good Diess Goes Unpunished

[Ogre]

VWs CEO is under pressure from their ‘workers council’ about his EV push and faces a potential ousting. It’s unlikely he actually gets the boot but he is under a lot of pressure for his aggressive stance on pushing the company into the 21st century and electrification.

https://electrek.co/2021/11/04/vw-c...after-telling-truth-need-to-go-electric-fast/

 

[rr6013]

VWs CEO is under pressure from their ‘workers council’ about his EV push and faces a potential ousting. It’s unlikely he actually gets the boot but he is under a lot of pressure for his aggressive stance on pushing the company into the 21st century and electrification.

https://electrek.co/2021/11/04/vw-c...after-telling-truth-need-to-go-electric-fast/

Deiss is cutting 2/3rds labor out of every vehicle VW produces. He wants to cut 30 hrs/car down to 14 hrs/car. German labor holds voting rights to Deiss’ means of production. While Deiss .et .al hold voting rights to management. Literally two out of every three current employees are voting themselves out of a career.

Those jobs are lost forever. VW is #2 automaker behind TOY both of whom are still in “denial” phase. “Anger” in German at such a draconian loss would not be a silent protest. Peisch and Porsche families regardless the financial costs can’t afford the political cost.

Deiss is an operator not the smooth talking diplomat needed to bridge VW into the 21st.

Edit: URL source
https://www.reuters.com/technology/whats-driving-latest-volkswagen-power-struggle-2021-11-05/

 

[Ogre]

Can’t say I understand the finer points, but one thing is clear. VW is losing manuafacturing jobs one way or the other. They can lose 30% and stay competitive or 90% if they don’t.

Damned if you do, double damned if you don’t.

 

[Crissa]

If they succeed, they can sell more cars as their competitors drop out.

This is all so short-sighted, talking about jobs. Battery jobs aren't counted in assembly jobs. Sales projections assume no change in the market.

-Crissa

 

[Qball]

Evolve or die, the choice is quite obvious…….obviously.

 

[Ogre]

Evolve or die, the choice is quite obvious…….obviously.

Companies get complacent.

Employees get complacent.

If you can be easily replaced but are protected by a union, your job is ripe for disruption. Maybe your employer isn’t going to replace you, but even big/ seemingly safe jobs are vulnerable. Look at UPS, it’s long been thought to be one of the safe jobs with great pay and bennies. But in spite of massive growth in shipping, UPS is struggling. Amazon completely cut out the whole shipping industry.

Union protection only lasts so long as your employer does. Not bagging on unions here, but there is a fundamental vulnerability there.

 

[Ogre]

This thread is quite good.

Sadly, more recently there was some resolution to this and while Diess will remain CEO, he is losing a significant amount of power within the company.

I don’t think I’ve ever seen a company which was truly successful that was run by a committee. The BOD gives management direction, but the company executives usually run things.

 

[Crissa]

Plenty of successful companies governed by committee. But our system of laws doesn't really recognize them as distinct.

-Crissa

 

[myrickma]

Sadly, more recently there was some resolution to this and while Diess will remain CEO, he is losing a significant amount of power within the company.

I don’t think I’ve ever seen a company which was truly successful that was run by a committee. The BOD gives management direction, but the company executives usually run things.

I don't see it lasting. Can't imagine he'll stay quiet about the need to take drastic action. He'll be fired(asked to resign) for continuing to speak out, resign on principle, or be scapegoated when VW plummets. Always a chance they see the light, but I don't think the odds are in his favor.

 

[Ogre]

I don't see it lasting. Can't imagine he'll stay quiet about the need to take drastic action. He'll be fired(asked to resign) for continuing to speak out, resign on principle, or be scapegoated when VW plummets. Always a chance they see the light, but I don't think the odds are in his favor.

Agree. Was thinking he might retire since he’s on a sinking ship. Only real question is:

How much does he love VW? Loyalty can sometimes make people do things they wouldn’t otherwise.

 

[Crissa]

A rumor said they were doing this because 'Diess did not have a plan'.

I found that dubious.

Officially, they said the works council (workers union) was fully behind Diess's proposals.
https://cleantechnica.com/2021/11/27/diess-survives-volkswagen-board-review-for-now/

-Crissa

 

[firsttruck]

A rumor said they were doing this because 'Diess did not have a plan'.

I found that dubious.

....

Yup

What they really mean is they don't like the "reality" based plan Diess gave them that called for huge increase in investment and still huge number of workers lose jobs.

They want a "fantasy, denial of reality" based plan (lots of ICE & hybrids) where little investment is needed and no workers lose jobs.
When reality competition (EVs from Tesla & Chinese) gets through with the VW "fantasy" based plan, VW will be shell of former self and tons more workers lose jobs than Diess's plan.

 

[Ogre]

Yup

What they really mean is they don't like the "reality" based plan Diess gave them that called for huge increase in investment and still huge number of workers lose jobs.

They want a "fantasy, denial of reality" based plan (lots of ICE & hybrids) where little investment is needed and no workers lose jobs.
When reality competition (EVs from Tesla & Chinese) gets through with the VW "fantasy" based plan, VW will be shell of former self and tons more workers lose jobs than Diess's plan.

At least in the US, it’s a lot easier for a new CEO to push out big sweeping new changes.

That’s one of the big reasons new CEOs can look like champions in their first couple years.

 

[Crissa]

Diess didn't call for any workers to lose jobs. Or any job reductions.

He's rather specific about that.

-Crissa

 

[rr6013]

Diess didn't call for any workers to lose jobs. Or any job reductions.

He's rather specific about that.

-Crissa

But a source close to Diess told AFP: “There is no question of a reduction of 30,000 jobs.”

Literally correct, it was anonymously reported