A member of Volkswagen’s supervisory board resigned unexpectedly just before the company’s annual general meeting, raising concerns about governance at the German automaker. Susanne Wiegand, who joined the board last year and was seen by many investors as the sole truly independent member, announced her decision not to seek re-election amid reports of frustration over the board’s decision-making processes.

Wiegand, the former chief executive of defense firm Renk, reportedly felt marginalized and excluded from key discussions, with her advice often going unheeded by other board members. A person familiar with her reasoning said these concerns about corporate governance influenced her departure. In a brief statement, Wiegand said she had reached the decision independently “after carefully considering the full circumstances.”

Volkswagen’s supervisory board declined to comment on her resignation but indicated that a replacement would be found promptly. Wiegand’s expected re-election in the shareholder meeting was widely viewed as routine, highlighting the significance of her exit.

The incident has intensified investor unease at a time when Volkswagen faces mounting challenges, including stiff competition from Chinese rivals and the impact of U.S. tariffs on its business. Tanja Bauer of Deka Investment characterized Wiegand’s departure as a “very negative signal,” stating at the AGM that the supervisory board’s independence had effectively diminished to “towards zero.”

The supervisory board comprises 20 members, including 10 worker representatives and members of the Porsche-Piëch family, who control Volkswagen’s largest shareholder vehicle, Porsche Automobil Holding, and hold a majority of the voting shares. Other significant shareholders with board representation include Qatar’s sovereign wealth fund and the government of Lower Saxony, which is also a substantial investor in Volkswagen.

This governance concern emerges amid ongoing scrutiny of Volkswagen’s management, including questions related to potential conflicts of interest around the sale of its diesel engine unit, Everlance. The company continues to navigate a complex operating environment while managing the expectations of a diverse and powerful shareholder base.