Diess stays on to steer Volkswagen into electric future By Reuters

By Jan Schwartz and Victoria Waldersee

HAMBURG (Reuters) -Volkswagen CEO Herbert Diess will stay on, the German carmaker said on Thursday, ending weeks of uncertainty about his future as it updated a five-year plan that sees spending on electric cars rising by about a half.

Rolf Brandstaetter, who took over Diess’s responsibilities as head of the Volkswagen (DE:) brand last year, will join the board and lead a new division entitled Volkswagen Passenger Cars from Jan. 1, the company said in a statement.

He will also take over Volkswagen’s China business from Diess from Aug. 1. However, Diess will take on responsibility for the company’s software unit Cariad.

Diess’s future had been in doubt following clashes with Volkswagen’s powerful labour unions, although sources told Reuters earlier this week that he was likely to stay on as CEO, albeit with fewer responsibilities.

“We have made important decisions and found good answers to make Volkswagen fit for the future,” supervisory board chair Hans Dieter Poetsch said in a press conference following the announcements.

“I cannot complain about a lack of responsibilities – I continue to feel fully responsible for the company,” Diess said.

The company’s supervisory board also presented its annual update to the company’s five-year investment plan, outlining investments of 159 billion euros ($180 billion) and involving electrifying more of Volkswagen’s sites across Europe.

Spending for electric vehicles will be raised by about 50% to 52 billion euros.

The carmaker also confirmed it expected its operating margin to be at the upper end of its 6-7.5% target range for 2021.

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