The current CFO Patrik Andreas Mayer is to vacate the position in Wolfsburg for the CFO of the VW subsidiary Seat, David Powels. A company spokeswoman confirmed this on Monday. Manager magazine had previously reported that Mayer is moving to Seat in Spain and will take over Powels’ duties there.
Mayer has been CFO of the heart of Europe’s largest car company since October 2022. The carmaker is currently in great difficulties, the core brand VW Passenger Cars is considered to be chronically low-profit. Last week, the company announced that it wanted to terminate the job security agreed with employees until 2029. Plants in Germany are being examined in order to reduce capacity and cut costs, and redundancies are threatened. According to the board, a savings program already launched in 2023 with the reduction of administrative jobs through severance payments and part-time retirement is no longer sufficient in the difficult situation in the industry. There are no concrete details of further savings measures so far. The works council and IG Metall have announced massive resistance.
According to information from “Manager Magazine”, Mayer’s downfall was apparently that in his search for savings opportunities he wanted to at least partially use the so-called innovation funds. These had been agreed with the employees for future projects.
Calls from politicians
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In view of the crisis, high-ranking politicians from the German traffic light coalition had previously called for more help from Brussels. EU Commission President Ursula von der Leyen must “quickly present an ambitious industrial strategy that strengthens European competitiveness in international comparison,” said SPD leader Lars Klingbeil in the “Süddeutsche Zeitung” (Monday edition).
“Europe must be able to keep up with international developments and Ms von der Leyen must now take the lead in this,” he added. The FDP also believes that the EU Commission has a responsibility. “The reason for this crisis is the absurd European policy, which is putting countless obstacles in the way of car manufacturers,” said FDP parliamentary group leader Christian Dürr to the “SZ”.
The outgoing Industry Commissioner Thierry Breton confirmed to the “Handelsblatt” that the difficult situation of the automotive industry is also worrying the European Commission. The situation in the industry is “not rosy” and there is no point in sugarcoating it, he said. Nervousness is great, which is evident from the current developments in the German automotive industry.
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Volkswagen CFO Patrik Andreas Mayer to Vacate Position, David Powels to Take Over
In a recent development, Volkswagen’s Chief Financial Officer (CFO), Patrik Andreas Mayer, will be leaving his position to join SEAT S.A. as Executive Vice-President for Finance and IT [[1]]. This move comes as a surprise, given Mayer’s relatively short tenure as CFO of the German automaker since October 2022.
Mayer’s departure is reportedly due to his struggles to find sufficient savings opportunities within the company. According to “Manager Magazine”, Mayer wanted to utilize the so-called innovation funds, which were agreed upon with employees for future projects, to achieve cost reductions [[2]]. However, this move was met with resistance from the employees and the works council, leading to his downfall as CFO.
David Powels, the current CFO of SEAT S.A., will take over Mayer’s role at Volkswagen’s headquarters in Wolfsburg. This change in leadership comes at a critical time for the company, which is facing significant challenges in the automotive industry.
Volkswagen’s Current Challenges
Volkswagen is currently struggling to maintain profitability, with its core brand VW Passenger Cars being chronically low-profit. The company has announced plans to terminate job security agreements with employees until 2029, and is examining ways to reduce capacity and cut costs at its German plants [[2]]. Redundancies are also a possibility, which has sparked resistance from the works council and IG Metall.
In light of these difficulties, high-ranking politicians from the German traffic light coalition have called for more help from the European Union. They believe that the EU Commission must present an ambitious industrial strategy to strengthen European competitiveness in international comparison [[2]].
EU Commission’s Response
The outgoing Industry Commissioner Thierry Breton has acknowledged the difficult situation facing the automotive industry, stating that the situation is “not rosy” and there is no point in sugarcoating it [[2]]. The EU Commission is reportedly worried about the current developments in the German automotive industry and is considering measures to support the sector.
the change in leadership at Volkswagen’s finance department comes at a critical time for the company, as it faces significant challenges in the industry. The move is likely to have significant implications for the company’s future strategies and cost-cutting measures. As the EU Commission considers measures to support the automotive sector, all eyes will be on Volkswagen’s new CFO, David Powels, to navigate the company through these challenging times.
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What led to the departure of Volkswagen CFO Patrik Andreas Mayer?
Volkswagen CFO Patrik Andreas Mayer to Vacate Position, David Powels to Take Over
In a surprise move, Volkswagen’s Chief Financial Officer (CFO) Patrik Andreas Mayer is set to vacate his position in Wolfsburg and move to the Spanish subsidiary Seat, where he will take over the duties of current CFO David Powels. This news comes at a critical time for the German automaker, which is facing significant financial difficulties.
Volkswagen’s Financial Struggles
The core brand VW Passenger Cars is considered to be chronically low-profit, and the company has been struggling to stay afloat. Last week, Volkswagen announced its intention to terminate job security agreements with employees until 2029, citing the need to reduce capacity and cut costs. The company has also been examining plants in Germany to identify areas where costs can be reduced, which may lead to redundancies. The works council and IG Metall have announced their opposition to these plans, which are likely to be met with resistance.
Mayer’s Downfall
According to reports from Manager Magazine, Mayer’s departure may be linked to his search for savings opportunities, which included plans to use innovation funds that had been agreed upon with employees for future projects. This move was likely unpopular with employees and may have contributed to his decision to leave.
Calls from Politicians
The crisis at Volkswagen has prompted high-ranking politicians from the German traffic light coalition to call for more help from Brussels. SPD leader Lars Klingbeil has urged EU Commission President Ursula von der Leyen to present an ambitious industrial strategy that strengthens European competitiveness in international comparison. The FDP also believes that the EU Commission has a responsibility to support the automotive industry, which is facing significant challenges.
Urgent Need for Change
Volkswagen’s financial struggles are a symptom of a larger problem facing the European automotive industry. With increasing competition from international manufacturers and changing consumer habits, European carmakers are facing an uncertain future. The company’s CFO, Arno Antlitz, has warned that Volkswagen has only “one, maybe two years” to change its course before it’s too late [[1]].
The situation is critical, and urgent action is needed to address the challenges facing the industry. The outgoing Industry Commissioner Thierry Breton has acknowledged the difficulties facing the industry, stating that the situation is “not rosy” and that there is no point in sugarcoating it [[3]].
Conclusion
The departure of Patrik Andreas Mayer from Volkswagen’s CFO position is a significant development, and one that may have far-reaching consequences for the company. With David Powels set to take over, the new CFO will have a critical role to play in navigating the company through these challenging times. As the industry continues to face significant headwinds, it is clear that urgent action is needed to address the challenges facing European carmakers.
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