Bang at VW: HR manager Gunnar Kilian has to go

VW likes to settle major personnel matters shortly before the plant holidays: Former CEO Herbert Diess was fired around this time three years ago, and now HR director Gunnar Kilian is the next to be fired. The 50-year-old is leaving the board with immediate effect, the company announced during a supervisory board meeting on Friday afternoon. He was responsible for 680,000 employees worldwide at Germany's largest industrial group.

In the biggest restructuring in its history, VW is losing a key figure. Kilian, in particular, was supposed to manage the reduction of tens of thousands of jobs in Germany, which was agreed upon in December. In the process, he has apparently lost the support of his former associates on the powerful works council.

Many people in Wolfsburg reacted with shock on Friday. Kilian was traditionally considered a bridge builder in a company full of pitfalls and rifts. The 50-year-old has had a career that is perhaps only possible in Wolfsburg: Starting out as a journalist, after moving to VW, he soon became press spokesman for the works council and later assistant to the then chairman of the supervisory board, Ferdinand Piëch. Afterward, as general secretary of the works council, he became the most important strategist for the employee side.

In 2018, Kilian moved into management and directly to the top: Chief Human Resources Officer of a corporation with more than 650,000 employees worldwide. At the end of his tenure, alongside CEO Oliver Blume, he was the longest-serving member of the board and also the youngest member. In a farewell email to his team, obtained by RND, he cites their shared successes, but also the many internal and external crises of the past years and the "enormous workload."

On Friday, all sides endeavored to achieve a harmonious separation. Blume and Supervisory Board Chairman Hans Dieter Pötsch thanked Kilian for his work and his "significant contribution to the Group's transformation efforts." Works Council Chair Daniela Cavallo wrote to the workforce: "Both the workforce and the employee representatives on the Supervisory Board have a great deal to thank Gunnar Kilian for."

But relations with both sides have recently crumbled – apparently especially with the employee representatives. The company no longer wanted to support an upcoming contract extension for Kilian, explained his longtime partner Cavallo, citing the reasons for last year's major conflict as one of the reasons: "One of them is that Gunnar Kilian's name will always be associated with the termination of our collective bargaining agreement last year. It was not without reason that we called this a historic breach of taboo."

In September, the VW board terminated the job guarantee for the company's 100,000-odd employees in Germany and threatened plant closures and mass layoffs. This led to the most bitter VW wage dispute in decades, which only ended shortly before Christmas. Although a new employment guarantee was agreed upon until the end of 2030, 35,000 jobs are to be cut in a socially acceptable manner. The workforce is also making significant financial sacrifices.

Kilian was an architect of this "Future of Volkswagen" agreement – ​​and allegedly already suspected at the time that it would cost him something: "He was aware that this would not go without consequences," according to those close to him. Since the concrete implementation of the austerity measures began, there have reportedly been several conflicts with the employee side. More and more employees have experienced the "Christmas miracle" as their "blue miracle." "In recent months, there have been several events that have made it difficult to look ahead together," Cavallo said in an internal memo to the workforce, which was obtained by RND.

But even within the board of directors, the distance between Kilian and him, who is praised within the company for his diplomatic qualities and connections across all camps, apparently grew. "Differing ideas regarding the management of investment companies" were the reason for the split, according to the official VW statement.

Behind this lies the internal discussion about the possible sale of subsidiaries and the involvement of partners. This is intended to raise funds for the corporate restructuring. However, Kilian has repeatedly opposed this, most recently in the truck division, for which he was also responsible on the Group Executive Board.

Wolfsburg said on Friday that the split had been looming internally for some time, but then came surprisingly quickly. While all parties had comprehensive statements ready on Friday, and Kilian said goodbye to his team with a prepared email, his successor has yet to be determined. VW brand boss Thomas Schäfer will temporarily take over the human resources department on the Group Board of Management.

According to works council chairwoman Cavallo, the search for a successor has already begun. "In the role of labor director, it is now time for a fresh start in terms of personnel," Cavallo explained, emphasizing that at Volkswagen, the employee representatives traditionally have the right to propose candidates. IG Metall chairwoman Christiane Benner, deputy chairwoman of the VW supervisory board, is also quoted in the statement: "The search for a successor is also a top priority for me personally."