Volkswagen’s CEO Herbert Diess ousted by a family plot


Momentum to take away Diess earlier than VW’s summer season break began constructing final weekend throughout particular person discussions among the many eight-member presidium inside its supervisory board. Diess was within the US to shore up progress in a market the place Europe’s largest carmaker has lengthy lagged.

Whereas the highest government was away, key representatives of VW’s important stakeholders began considering who might change Diess ought to tensions throughout the firm worsen. There have been repeated flare-ups, together with late final 12 months, when Diess warned the corporate risked falling behind Tesla and mused about main job cuts. In December, VW overhauled its administration board, stripping Diess of some tasks whereas tasking him with main Cariad, the carmaker’s software program unit.

Porsche chief Oliver Blume will succeed Diess.

Porsche chief Oliver Blume will succeed Diess.Credit score:Bloomberg

Since then, discord at Cariad has pushed again the scheduled rollout of vital new fashions, together with the electrical Porsche Macan SUV. His wrestle to muster broader help to execute his €89 billion ($131 billion) electric-vehicle and software program technique began to fray help amongst Porsche and Piech members of the family.

The successor

Through the deliberations of the final week, Porsche CEO Oliver Blume emerged because the inheritor obvious together with his lengthy historical past of key operational positions at VW and monitor report of rejuvenating the sports-car division. Whereas Porsche’s all-electric Taycan is Blume’s most seen achievement, he has efficiently executed numerous tasks throughout the group, profitable the backing of VW’s many factions.

“The timing is unlucky and one other illustration of dysfunction at VW.”

Jefferies analyst Philippe Houchois

As VW’s energy gamers weighed professionals and cons of placing a brand new chief in cost, they began to tilt towards making a change. Hours after Diess returned from Chattanooga, he was hit with the choice and given 24 hours to reply. After consulting with authorized advisers, he determined it was time to go.

Diess knowledgeable VW Chairman Hans Dieter Poetsch on Friday. A gathering of the corporate’s 20-member supervisory board was known as for 4.30pm. in Germany. Fifteen minutes earlier than the beginning of the assembly, the presidium members knowledgeable their respective camps that Diess’s substitute was on the agenda. The board voted unanimously for his ouster.

Diess, credited with setting up the trade’s largest EV rollout, will make method for Blume in simply over a month. He’s possible nonetheless entitled to be paid in full underneath his contract via October 2025. Relying on the automaker’s working outcomes and share efficiency, the quantity might attain greater than €30 million.

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