Diess steps down as VW CEO

Created: 2022-07-22Updated: 2022-07-22 7:36 p.m

Herbert Diess resigns as CEO of the Volkswagen Group.

© Sven Hoppe/dpa

For a long time he had not only had friends in his position: Herbert Diess, as VW boss, was particularly offensive to the powerful works council.

In a few weeks he should get a successor - from Porsche.

Wolfsburg – Herbert Diess resigns as CEO of the Volkswagen Group.

The company surprisingly announced that the 63-year-old had agreed with the supervisory board to leave on September 1st.

His successor is to be Porsche boss Oliver Blume.

The decision on this was made "consensually".

At the same time, Blume will remain CEO of Porsche AG, the group said.

The inspectors had also decided that VW CFO Arno Antlitz should support him “in day-to-day operations” for the entire group.

One of Blume's tasks was preparing for the Porsche IPO, which was planned for the end of the year.

Chairman of the Supervisory Board Hans Dieter Pötsch thanked Diess.

He "significantly drove forward the transformation both during his time as CEO of the Volkswagen brand and of the group".

The former BMW manager pushed ahead with the conversion of VW in e-mobility and also the expansion of the business to mobility services.

However, there have recently been a number of problems, especially with the sluggish and significantly more expensive development of proprietary software.

Blume has been acting as a successor for a long time

Blume had long been considered a possible successor to Diess.

His name came up several times behind the scenes when a renewed conflict between the VW boss and the powerful works council over austerity programs escalated last year.

Before that, there had already been violent differences of opinion with parts of the supervisory board about the further strategy and about a possible drastic job cut at Europe's largest car manufacturer.

With his management and communication style, Diess repeatedly caused irritation.

Lower Saxony's Prime Minister Stephan Weil, who represents the state as the second most important owner on the supervisory board, paid tribute to Diess.

He gave the company the impetus for major new projects.

Weil said of Blume: "I am confident that he will lead the Group with prudence and foresight in a team with the Executive Board, in good cooperation with the works council and with great respect for the employees."

The IG Metall chairman and deputy chairman of the supervisory board, Jörg Hofmann, emphasized that Volkswagen had to “live up to its role as a social role model in addition to its role as a technological favourite”.

Works council chief Daniela Cavallo made a similar statement.

The upheaval in the industry is difficult.

VW must emerge stronger from it.

"However, it is also our aim that, despite the great challenges, job security and profitability remain equal corporate goals."

Blume has been with the group since 1994.

He has also worked for Audi and Seat.

In 2015 he became head of the high-yield subsidiary Porsche.

In 2018 he was given a seat on the Group Executive Board.

The 54-year-old is an expert in production and has close contacts with both the Porsche/Piëch owner families and the employee representatives.

dpa