Human Resources Director leaves VW: Volkswagen fires Gunnar Kilian

The reason given was a difference of opinion regarding the management of investment companies. Thomas Schäfer, currently CEO of the Volkswagen brand, will temporarily take over the management of the human resources department.

Kilian was a member of the Group Executive Board for more than seven years and was considered a well-connected manager with close ties to the IG Metall union. Previously, he held various positions within the company, including press spokesperson for the Group Works Council and later as managing director of this body. He also worked in the circle of former Supervisory Board Chairman Ferdinand Piëch as head of the Salzburg office. Kilian was appointed to the Executive Board in April 2018.

According to Volkswagen, Kilian has significantly shaped the human resources department in recent years. Supervisory Board Chairman Hans Dieter Pötsch praised his work and stated that Kilian had shared responsibility for the reorientation of the human resources department and the commercial vehicle business. CEO Oliver Blume emphasized that Kilian, with his detailed knowledge of the Group's structures and processes, had provided important impetus for the future.

Behind the scenes, however, the relationship between Kilian and parts of the works council was recently considered severely strained. According to information from company sources, the employee representatives on the supervisory board were no longer willing to extend Kilian's contract. As works council chairwoman Daniela Cavallo explained in an internal special edition of the employee magazine, there had been fundamental differences over key issues. Kilian's handling of the personnel cuts was particularly criticized. According to Cavallo, his name "will always be associated with the termination of our collective bargaining agreement family last year." She made it clear that the employee representatives had hoped for more resistance from him against the job cuts.

There have also reportedly been repeated disagreements regarding the management of subsidiaries such as MAN Energy Solutions, where Kilian chaired the supervisory board. A previous decision to retain the long-established industrial division within the group is apparently back under discussion. Observers see this as further evidence of growing tensions between the executive board and the supervisory board.

The personnel change comes during a phase of far-reaching restructuring. The company is in the midst of a far-reaching cost-cutting program that is expected to eliminate up to 35,000 jobs. Although redundancies are ruled out, the plan is nevertheless being controversially discussed internally. The job cuts are to be implemented primarily through partial retirement and severance pay programs. Around 130,000 employees are affected in Germany alone; the company has approximately 680,000 employees worldwide.

Kilian's departure thus also symbolizes a change of direction within the company. While in his previous role he was considered a liaison between management and the employee representatives, he was recently accused of being too close to the company's leadership – at the expense of employee interests. The longtime confidant of former works council chairman Bernd Osterloh had established himself over the years as an influential power broker within the company. This support now appears to have been withdrawn for good.

According to "tagesschau.de," Lower Saxony's Minister President Olaf Lies expressed regret at Kilian's departure. He said he had always worked constructively with him and recognized his achievements. Nevertheless, he understood the reasons for the decision. IG Metall also signaled that the search for a permanent successor was now a top priority. As usual, the union itself would submit proposals for the new appointment to the board.

Thomas Schäfer's interim head of the human resources department is considered a temporary solution. At the same time, Arne Meiswinkel, head of human resources for the Volkswagen brand, will be more closely involved in strategic matters. A permanent successor has not yet been named. According to company sources, the timing of a decision will also depend on discussions within the supervisory board and with the IG Metall union.

The photo show shows the members of the VW Group Board of Management and the Supervisory Board.