HAMBURG, Nov 30 (Reuters) - From easing supply bottlenecks to improvements in its software unit, discussions at Volkswagen over the company's future were going very well, CEO Herbert Diess said at a recent manager meeting, a copy of his speech seen by Reuters showed.

"All in all, you can see that my mood is very good because we've made a lot of progress in the last few weeks," said the CEO, whose position at the helm of Europe's largest carmaker has been hanging by a thread in recent weeks amid tensions over his management style and electrification strategy.

The worst of the supply chain crisis, which crippled output across the car industry, has passed, Diess said, with production volume starting to rise and the outlook for next year improving.

Discussions were also underway between management and the works council over assembling the electric ID.3 model, currently made in the Zwickau plant, at the company's main plant in Wolfsburg, Diess said - addressing a key concern among workers that the plant would be left behind in the electrification transition.

"It could certainly make sense to produce such a model," Diess said.

A decision on the future of the CEO himself was expected by the end of the week, two sources close to negotiations who declined to be named told Reuters, with the latest round of discussions on the matter taking place last weekend. (Reporting by Jan Schwartz, Writing by Victoria Waldersee, Editing by Miranda Murray)