Latest News

VW’s Diess says to remain CEO, dismisses fossil fuel phase out

0
Economy11 minutes ago (Nov 10, 2021 12:27)

© Reuters. FILE PHOTO: Volkswagen CEO Herbert Diess looks on during his visit to Volkswagen’s electric car plant in Zwickau, Germany, June 23, 2021. REUTERS/Matthias Rietschel/File Photo

By Victoria Waldersee

BERLIN (Reuters) -Volkswagen’s Herbert Diess said on Wednesday he was confident he would remain as chief executive into next year, dismissing speculation that he could be pushed aside.

Diess, who is facing disagreements with Volkswagen (DE:VOWG_p)’s works council over potential cuts, was asked at an online summit organised by German newspaper Handelsblatt whether he believed he would keep his post to which he replied: “Yes, certainly”.

The CEO’s relationship with the powerful labour council has been strained over how radical an overhaul Europe’s top carmaker needs to achieve electric vehicle dominance.

Diess is due to meet later with works council head Daniela Cavallo, who last week heavily criticised his leadership and implementation of the company’s strategy.

He reiterated his confidence in Volkswagen’s strategy and business plan, stating it was “equally competitive in the new world as in the old world”.

GRIDLOCKED?

Diess also dismissed a pledge by carmakers https://www.reuters.com/business/cop/six-major-carmakers-agree-phase-out-fossil-fuel-vehicles-by-2040-uk-says-2021-11-10 including Daimler and General Motors (NYSE:GM) at COP26 https://www.reuters.com/business/cop to work towards phasing out internal combustion engine cars by 2040.

“It could still make sense to use synthetic fuel cars in Latin America in 2035,” he said.

Greenpeace Germany filed a lawsuit against Volkswagen on Monday for rejecting a proposal to end production of internal combustion cars by 2030 and cut emissions by 65% before then.

Diess told Handelsblatt that such a phase-out was “not doable”, adding: “We need raw materials, new mines, a circular economy. Battery capacity and building renewable energy grids across Europe will be the bottleneck”.

Volkswagen has so far committed to producing exclusively electric vehicles in Europe from 2035, and having a CO2-neutral fleet globally by 2050.

Current global chip shortages were affecting production of electric vehicles more than for ICE (NYSE:ICE) ones, Diess said.

VW’s Diess says to remain CEO, dismisses fossil fuel phase out

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Inflation, Rivian IPO, Jobless Claims – What’s Moving Markets

Previous article

Government advisers cut German growth forecasts, see more inflation

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News