* Porsche-Piech family stands behind Diess -sources
* Diess's dispute with labour bosses has hampered VW brand
* VW sup board to meet over 2016 results, exec pay rules
(Adds detail and background)
HAMBURG, Feb 24 Volkswagen's
embattled VW brand chief Herbert Diess still has the backing of
the clan that controls the carmaker, despite his recurring
clashes with labour leaders over cost-cutting plans, sources
Volkswagen's (VW) labour bosses earlier this month had
accused Diess of breaking promises made under a turnaround plan
agreed in November and halted cooperation with brand management
on issues including overtime work, cost savings and
Europe's largest automaker is hard pressed to cut spending
to fund a costly shift to electric cars and new mobility
services while grappling with billions of euros in costs for its
emissions test cheating scandal.
But Diess, who was known as a cost-cutter at BMW,
has repeatedly clashed with VW works council chief Bernd
Osterloh since he joined VW in July 2015 over where to make
The Porsche and Piech families, which control a majority of
VW common stock through the family-owned holding company Porsche
SE, stand behind the 58-year-old engineer despite
the quarrelling, two people familiar with the matter told
Reuters on Friday.
VW declined to comment.
Analysts have said VW's ability to overhaul its mass-market
brand, the group's largest by sales, will be key to the
company's post-Dieselgate recovery and have urged Diess to stand
firm on structural changes despite resistance from unions.
The Porsche and Piech families were instrumental in choosing
VW's former finance chief Hans Dieter Poetsch to become
supervisory board chairman after the emissions scandal broke in
September 2015, and likewise in picking former Porsche AG boss
Matthias Mueller to become VW group chief executive.
VW's supervisory board is expected to meet from 2 pm local
time (1300 GMT) on Friday to discuss the carmaker's 2016
financial results and new compensation guidelines for top
(Reporting by Jan Schwartz; Writing by Andreas Cremer; Editing
by Maria Sheahan)