London Daily

Focus on the big picture.
Monday, Jun 30, 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

0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×