(updated version)
WOLFSBURG (dpa-AFX) – In the end it was probably a problem, one argument too many. Herbert Diess is said to have twice narrowly avoided being kicked out as VW (Volkswagen (VW) vz) CEO, on Friday evening – shortly before the factory holidays in Wolfsburg – the surprising news came: The busy chairman, who was often criticized for his erratic behavior and roughness goes. On September 1st, he will be succeeded by the head of Porsche, Oliver Blume.
A brief message to the financial world after a meeting of the inspectors sealed the end of the ra Diess – almost exactly seven years after he switched from BMW to the Lower Saxony.
It had been suggested several times that it could happen. But in the end the measure seemed to be full – and Diess couldn’t go any further. At least that is what voices from corporate circles who have closely followed the development of the past few months suggest. Blume had already stood in reserve as a possible crown prince. He is regarded as a highly talented manager, has been very successful at Porsche to date – and tends to be a man of calm tones, both in communication and in strategic planning.
In addition to his function at the top of the group, Blume should also remain head of Porsche. With the IPO of the high-yield sports and off-road vehicle subsidiary by the end of the year, the group has big plans, especially in the current uncertain environment. VW CFO Arno Antlitz Blume is to assist in day-to-day business in Wolfsburg.
In addition to the technical tasks that await Blume, the personal details could also mark a change in management style. This is highly regarded in the industry. Without him – almost everyone agrees – VW would not be where the largest European car manufacturer is today, especially with its range of electric cars. But in terms of atmosphere, it wasn’t an easy time for some managers. And certainly not for the workforce.
Chairman of the Supervisory Board Hans Dieter Ptsch thanked Diess. He was instrumental in driving the transformation forward. However, there have also been problems recently, especially with the sluggish development of proprietary software systems, which is again becoming significantly more expensive.
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 impetus for important new projects. Weil said of Blume: “I’m confident that he will lead the Group with prudence and foresight in a team with the Management Board, in good cooperation with the Works Council and with great respect for the employees.”
Many a person should sit up and take notice of the last point, the appreciation of the employees. Diess often had a hard time with this – at least from the perspective of the works council and a number of colleagues on the assembly line. It started at the latest when many felt left alone with the bumpy start of the core models Golf 8 and ID. Employee representatives criticized the lack of a crisis strategy and the constant increase in pressure in production. IG Metall expressed its distrust in an open letter to Diess.
Union leader Jrg Hofmann, like Weil and works council leader Daniela Cavallo in the presidency, emphasized that VW “must not only live up to its role as a technological favourite, but also its role as a social role model”. Cavallo said the upheaval was 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.”
On the other hand, some people had rumored that Diess could possibly go of his own accord. He is said to have felt slowed down by the employee bank on the supervisory board when it came to restructuring the group, central personnel matters and proposals for more efficiency. He often clashed with Cavallo’s predecessor, Bernd Osterloh.
The scandal followed in the summer of 2020, when Diess accused members of the supervisory board of “crimes” and “lack of integrity” for piercing sensitive information. The fact that he demanded additional backing through an early contract extension was not well received. Diess stated that one of his goals was to “break up old, encrusted structures and make the company more agile and modern”. Cavallo initially supported a contract extension for another four years.
The next knock came last fall, when Diess is said to have emailed the manager circle for ideas for further savings without consulting the supervisors. In the medium term, up to 30,000 jobs that may have been superfluous were brought into play. The differences meant that the conclusion of the planning round about the investments had to be postponed.
The weak capacity utilization of many plants due to the chip crisis and the resulting short-time work for tens of thousands of employees also caused great resentment. Cavallo accused Diess of a poor supply concept – instead, he prefers to take care of PR appointments and even pose with the Tesla boss Elon Musk.
On the other hand, many investors considered Diess’ change of course in the direction of e-mobility and software to be more courageous than in almost any other company. His style was more admired than criticized here. The Porsche/Pich families, as VW’s main shareholders, repeatedly supported him.
Diess switched from BMW to VW in July 2015, just before the emissions scandal broke. First, he steered the VW core brand through three difficult “Dieselgate” years before he was also appointed head of the entire group in April 2018. After the row with the inspectors in the summer of 2020, he had to hand over management of the main brand to Ralf Brandstetter. Brandsttter is now going to China as a board member.
Recently, nervousness has spread in many areas due to the backlog in software development. At a meeting two weeks ago, the inspectors discussed the discrepancies in the expansion of the Cariad IT division. This should design a uniform program and electronic platform for all future models. After objections, especially from the subsidiaries Audi and Porsche, development there will initially continue in parallel.
Diess recently explained to the workforce that the timing in software development had to be improved. Splitting up the tasks here will cost VW up to half a billion euros. “Setbacks in individual projects are part of it. We still have to learn software culture.” He had overall responsibility for the central strategic area alongside electromobility.
A few weeks ago, the outgoing VW boss jovially explained various plans that he had with the company in the near future. Unlike before the summer break last year, however, this time there was no video in which he sped down the Mittelland Canal on an electric surfboard./jap/DP/he
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