VW’s work council leader seeking changes in management structure image

As the German automaker, the second largest in the world and the biggest in Europe is still recovering from the leadership crisis that resulted in the demise of long-running chairman Ferdinand Piech, there are cries for management changes.

For example, the powerful boss of the carmaker’s works council has called now for cuts to be implemented on the management level, according to a German magazine, as he seeks a nimbler structure able to cope faster with crises. Volkswagen’s management board today has nine positions and includes people responsible for procurement, China, commercial vehicles, sales and Audi. “Do we really need a management board member for group production, one for group sales?” was quoted Bernd Osterloch by weekly Manager Magazine in an interview. Last month, the powerful figure Ferdinand Piech, the head of the family clan that controls VW and the carmaker’s leader for more than two decades, was forced out of the chairman position after he tried and failed to ouster chief executive officer Martin Winterkorn.

Volkswagen is now searching for a new leader, as it needs a new chairman and is also mulling a change in the structure of the twelve-brand group. Osterloch has disclosed the labor officials and the board had been negotiating a better structure for the company for the past half year. Their view is the management should only include the key roles of finance and personnel, together with the leaders of the firm’s crucial brands and the truck holding.

Via Reuters