VW boss Diess wants fatter profit margins — and faster

Diess, pictured, has clashed with Porsche chief Oliver Blume and Diess, the magazine said.

FRANKFURT — Volkswagen Group’s new CEO, Herbert Diess, is pushing for faster margin improvements at the company’s Porsche, Audi and VW brands, German monthly Manager Magazin said.

Diess is not satisfied with progress at Audi and wants the premium brand to achieve an operating margin of 12 percent long-term, compared with 8.4 percent in 2017.

Without specifying its sources, Manager Magazin further said Porsche’s investments in electric vehicle platforms have threatened its goal of reaching a margin of 15 percent between 2021 and 2022, leading to a clash between Porsche chief Oliver Blume and Diess.

The Volkswagen brand is being pushed by Diess to achieve a 6 percent margin target by 2020 or 2021, the magazine said.

Diess is also demanding that Seat takes around 1,000 euros ($1,164) in costs out of each vehicle they produce.

A spokesman for Volkswagen AG declined to comment.