Volkswagen CEO Herbert Diess to resign
Volkswagen’s CEO Herbert Diess will resign today due to the scandal surrounding emissions cheating.
Although Diess’ contract was set to expire in 2025, he decided to quit the company after a brief meeting with board members. While the reasoning behind his departure was not disclosed, experts believe it was largely due to Volkswagen’s emissions scandal. Volkswagen–and Diess–came under scorn after it confessed to using special software that turned on pollution controls to cheat US pollution regulations. Afterward, Diess was prosecuted for stock manipulation only for the charges to be dropped later on.
During the short- to medium-term Volkswagen will change the organizational framework in its leadership cadre. In this context, the firm is looking to reduce the list of executives by a couple of seats, likely removing the positions tasked with procurement and sales. This will bring the company closer to the control of the shareholders. As a result, the company will be better equipped for the transition toward green energy which is the primary aim of the company. With that being said, due to many factors ranging from the unavailability of computer chips to the ongoing war in Ukraine, the company’s stocks will be significantly impacted during the long term.
