SHOCKER! Diess Out At Volkswagen

Oliver Blume will take over as CEO of Volkswagen, succeeding Herbert Diess in a decision that has taken everyone by surprise.

Herbert Diess, who has served as CEO of Volkswagen Group since 2015, will resign from his position and depart the firm on September 1, according to a press statement issued by Volkswagen Group on July 22. The news release was written in a neutral tone. Oliver Blume, who serves as CEO of Porsche AG at the present time, will take over for him.

Diess was given a glowing recommendation by the head of the Supervisory Board, Hans Dieter Potsch, before Potsch pushed Diess off the boat. "During his term as chairman of the Board of Management of the Volkswagen Passenger Cars Brand and as Chairman of the Group Board of Management, Herbert Diess played a vital role in progressing the company's transformation into a more customer-centric business. The Group and its brands have a good chance of surviving into the foreseeable future; the Group's capacity for innovation and its earning power have both been improved. Mr. Diess gave an outstanding presentation in which he illustrated the speed at which and the consistency with which he was able to carry out activities that had far-reaching implications. Not only did he navigate the firm through waters that were highly tumultuous, but he also introduced an entirely new strategy.

Diess was brought in to save Volkswagen's bacon after the company was caught red-handed rigging its diesel-powered vehicles to avoid emissions rules, and he did an outstanding job of it. Diess was hired to pull Volkswagen's chestnuts out of the fire. But Reuters cites individuals with knowledge of the situation as saying that the Porsche and Piech families, who possess more than half of the voting rights and 31.4 percent of Volkswagen's stock share, pushed for a change at the top of the company. "Diess was incapable of being reformed. He made Volkswagen a far better company by making important changes. However, his communication was awful, according to a person who spoke to Reuters under the condition that they not be identified.

Blume will take over as CEO of Porsche AG beginning September 1 and will continue in that role while the firm pushes forward with its plans for an initial public offering (IPO) later this year. After beginning his Volkswagen Group career in 1994 as an apprentice at Audi, where he eventually became head of production, Blume has held a variety of positions inside the company. Before going on to Porsche, he previously held positions at SEAT and Volkswagen. In 2015, he was appointed chairman of the Board of Management of Porsche, and he has served as a member of the Board of Management for the Volkswagen Group since 2018.

Oliver Blume has demonstrated his operational and strategic talents in several roles within the Group and in several brands. For the past seven years in a row, he has led Porsche AG from a financial, technological, and cultural perspective with remarkable success. According to Potsch, "from the perspective of the Supervisory Board, he is now the perfect person to lead the Group and to further develop its customer focus as well as the positioning of its brands and products."

According to the press release, "Oliver Blume, together with the entire Board of Management, will continue to press ahead with the transformation of the company started by Diess with a leadership culture that makes teamwork a top priority." [Citation needed] Oliver Blume will continue to press ahead with the transformation of the company started by Diess.

There are some who question whether or not Volkswagen has made the right choice here. According to Bernstein Research analyst Daniel Roeska, heading both firms might "make a bad governance scenario worse." Reuters reported on this statement. We do not believe that investors will be pleased with the diminution of the CEO role... particularly if the IPO was intended to provide a higher degree of autonomy in relation to the Volkswagen Group.

SOURCE: NEWS AGENCIES