Arab Press

بالشعب و للشعب
Saturday, Aug 02, 2025

VW's CEO Diess ousted after tumultuous tenure, Porsche's Blume to succeed

VW's CEO Diess ousted after tumultuous tenure, Porsche's Blume to succeed

Porsche Chief Executive Oliver Blume will take over from Herbert Diess as CEO of Volkswagen (VOWG_p.DE), the carmaker said on Friday, after a supervisory board vote forced Diess to step down from his four-year tenure following a series of missteps over strategy and communication style.

Sources with knowledge of the matter said the Porsche and Piech families, who own over half the voting rights and a 31.4% equity stake in Volkswagen, pressed for a change at the helm.

"Diess was incorrigible. He significantly changed Volkswagen - for the better. But his communication was miserable," one source said, asking not to be named.

Blume will take over from Sept. 1, keeping his position as CEO of Porsche alongside his news responsibilities - "including in the event of a possible IPO", a statement said.

The 54-year-old has held numerous roles around the Volkswagen empire, from trainee at Audi to production chief at the Wolfsburg headquarters to head of production and logistics at Porsche from 2009 and CEO from 2013.

His latest challenge is spearheading the company's effort to list on the stock market as it shores up funding to shift to electric-driven sports cars.

The dual role leading both companies could "make a bad governance situation worse," analyst Daniel Roeska of Bernstein Research warned. "We do not think investors will like the CEO-dilution... especially if the IPO was supposed to create greater independence from the Volkswagen Group," he said.


Volkswagen executives have pegged a possible IPO of Porsche in the fourth quarter as a means to fund its makeover as an electrification-oriented carmaker spanning software, batteries and cars, though poor market conditions mean a listing could bring in billions less than originally hoped.

"I know Blume always also pushed for the IPO. So don’t think they’ll reverse the decision," a source close to preparations for the listings said.

Diess' ousting was also linked to his troubles leading the carmaker's software unit Cariad, a source with knowledge of the matter said, set up on his watch but far exceeding its budget and years behind on goals to launch a new software platform.

Diess' future at Volkswagen has been in doubt on multiple occasions, most recently in autumn last year after he stated a mismanaged transition to electrification could cost the carmaker over 30,000 jobs. He was also lambasted for his frequent public warnings that Volkswagen was falling behind Tesla .

While Diess was seen as taking an investor-led approach, cutting costs and focusing on electrification, the instability over his leadership eventually weighed on Volkswagen's market value which has been on a downward spiral since early 2021.

Workers' council chief Daniela Cavallo had warned that support for the extension of Diess' contract would depend on whether he could keep Volkswagen at the forefront of Europe's car industry.

Joerg Hofmann, president of Germany's most powerful union IG Metall and deputy chairman of Volkswagen's supervisory board, said: "The dynamics of change in the automotive industry are enormous... The decisions taken today will allow us to keep up the pace and exploit the lead we have carved out."

In Europe, Volkswagen is ahead on electric vehicle (EV) sales with roughly 25% market share compared with Tesla's 13%.

But whether it will remain in first place is unclear, with its production times for an EV currently three times longer than Tesla's and a new electric-only factory not set to open until 2026.

Listing the carmaker's achievements this year so far in a LinkedIn post on Friday before the announcement of his departure, Diess said: "After a really stressful first half of 2022 many of us are looking forward to a well-deserved summer break."

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
×