VW boss Diess calls for help despite billions in profit – Economy

The conversation on the daily topics revolves around bonuses, dividends and billions in earnings last year. However, Herbert Diess demands crown help for the auto industry.

In the auto industry, which isn’t exactly apprehensive per se, VW boss Herbert Diess is seen as someone who belongs to the toughest guy. Years ago, for example, the longtime BMW manager wanted to be the boss in Munich. When that didn’t work, he switched to VW in 2015, where he became CEO three years later. Why be in the second row in Munich forever when you can reach the top of the much bigger group in Wolfsburg? When it comes to grand ambitions, power, and influence, experts say, you’re in better hands with VW anyway than with your southern colleagues. After all, Lower Saxony’s car empire has been ruled by men who are as confident and powerful as those who shape the style. From bosses like Ferdinand Piëch or Martin Winterkorn.

However, this one doesn’t just deal with balance numbers, motors, joints and wheelbase. Unlike his predecessors, he is also regularly attracted to television. From the talk shows of Maybrit Illner or Markus Lanz to daily topics: the 61-year-old man does all the formats. And when it happens, it’s generally not just about Volkswagen, it’s often about the big picture, too. So the manager is not just a lobbyist in his own name, but also the spokesperson for an entire industry. Then the boss of the world’s largest automaker, which recently sold some 10 million vehicles, also speaks a bit for colleagues at Daimler, BMW or Opel.

That was also the case on Monday, when he applied for state subsidies from the auto industry in an interview with the daily topic. “We urgently need a stimulus package for the auto industry,” said Diess. Germany is a car country, and if you want to boost the economy, your best bet is to do it with cars. Selling a car has the advantage that it starts a complete “order chain”, the VW boss said. The car as the center and fixed star of the German economy, so to speak.

Neither the demands nor the arguments were particularly new. Most interesting was the course of the conversation, which also discussed bonds, dividends, and billions in earnings last year. And the question of why the car should be the focus of politics again. The moderator wants to know if a general reduction in VAT would not make more sense. At least it would be a cross industry. And, finally, there would be sectors that will be seriously affected by the crisis, such as gastronomy or tourism. Shouldn’t they be “given preference”? Overall, this is a “permissible discussion,” Diess also thinks. Of course, economic stimulus programs could also be designed differently. But the auto industry has the biggest effect with all its employees, suppliers, and car dealers. Furthermore, VAT reduction is a “relatively expensive measure”.

All of this could still be controversially discussed. But then everything became a little more complex in terms of content. So when it comes to how to proceed with billions of dividends and bond payments in this group, it has extraordinarily wealthy shareholders with top shareholders of the Porsche and Piëch families. Maybe you don’t have to cut everything? “As a last resort,” one would think about it, Diess replied. “Final decisions have yet to be made.” As a last resort?

Finally, the VW boss praised: Despite its billions of dollars scandal, VW had already written one of the most successful years in history in 2019: the Wolfsburg group had made a profit of € 20 billion . Then the company really would not need any help, so the objection. And what about the tens of thousands of short-term workers? Here, too, is clear to Diess: After all, it’s the billions in contributions that have been paid in recent years. In the current crisis situation, a subsidy should be “allowed” for a short time.

The combination of billions in earnings, dividends and demand for sales support was not without consequences. SPD politician Kevin Kühnert tweeted that VW management was playing “on fire.” Also because they want to subsidize the entire vehicle fleet with gasoline and diesel vehicles, and not just the greenest electric or hybrid models. In any case, this has political supporters. Bavarian Finance Minister Hubert Aiwanger of Free Voters tweeted a few days ago: “I am asking 4,000 euros for a new car premium so we can get back to car production!” One of the most interesting reactions to Aiwanger came from that Hamburg lawyer who tweeted: “I demand unconditional basic income, cultural bonuses for theater and company and a nice nickel silver for everyone!”

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