HAMBURG — Volkswagen Group is contemplating a doable change to its supervisory board that might result in the alternative of Bernd Osterloh, its highly effective works council head, sources acquainted with the matter instructed Reuters.

A transfer for Osterloh, if confirmed, may ease tensions that got here to a head final 12 months when he opposed a push by CEO Herbert Diess for a contract extension to drive his plans for price cuts and to release sources to speculate extra in electrical automobiles.

One supply mentioned that Osterloh had been provided the place of personnel director at Traton, Volkswagen’s heavy truck unit that was spun off and individually listed in 2019.

A second supply mentioned VW was contemplating proposing a brand new labor consultant to its board, however didn’t give a reputation.

5 sources mentioned that the automaker would within the close to future debate an vital change within the composition of its supervisory board.

The corporate, its primary shareholder Porsche SE and the works council all declined to remark.

Osterloh, 64, has since 2005 been a member of VW’s supervisory board, half of which consists of labor representatives beneath Germany’s system of company governance.

Ought to he depart the VW supervisory board, as could be required ought to he take up an government position at Traton, the almost definitely candidate to switch him could be deputy works council head Daniela Cavallo, the sources mentioned.

Procedurally, it might be doable to appoint Cavallo to the supervisory board, topic to a confirmatory vote by shareholders on the annual assembly in July, the sources added.