Report: VW’s Ousted U.S. Chief Clashed with Management

Michael Horn, who left as CEO of Volkswagen AG’s U.S. operations earlier this week, often clashed with the company’s leadership in Germany about how to run the American operation, the Associated Press reports.

Alan Brown, who heads VW’s National Dealer Advisory Council, tells AP that Horn fought with VW leaders over such issues as which models to sell in the U.S. and how much to charge for them. He adds that Horn met resistance when he insisted the company give its diesel customers in the U.S. gift cards worth $1,000 after the company admitted rigging the engines to evade emission standards.

Brown says Herbert Diess, chairman of the VW brand, told him the company wanted to remove Horn from U.S. operations but refused to find him another top job elsewhere.

VW’s dealer group credits Horn’s two-year tenure with improving the company’s dealer relations, in part by improving VW’s model mix in the U.S. Brown says he has warned VW management there will be a “big problem” if they renege on the commitments Horn made with dealers.