Herbert Diess resigns as Volkswagen Group CEO

Controversial Volkswagen Group CEO Herbert Diess has resigned from his role, with Porsche's Oliver Blume set to take the helm later this year.

The move was announced following months of speculation about what Diess's future with the company would be, due, in part, to longstanding friction with labour representatives.

Blume will take over the top job as of September 1, Volkswagen said, combining it with his role as Chairman of the Board of Management for Porsche AG – which is set to continue even following Porsche's IPO later this year.

Meanwhile, VW’s current Chief Financial Officer, Arno Antlitz, will assume the position of chief operating officer.

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Herbert Diess

The Group's Board said Diess had resigned by "mutual agreement".

“During his tenure as Chairman of the Board of Management of the Volkswagen Passenger Cars Brand and as Chairman of the Group Board of Management, Herbert Diess played a key role in advancing the transformation of the company," said Supervisory Board Chairman, Hans Dieter Pötsch.

"The Group and its brands are viable for the future; its innovative capabilities and earning power are strengthened. Mr Diess impressively demonstrated the speed at which and consistency with which he was able to carry out far-reaching transformation processes. Not only did he steer the company through extremely turbulent waters, but he also implemented a fundamentally new strategy.”

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Since taking the job of CEO in 2018 – the third in the role since the fallout of Dieselgate – Diess has lauded American EV specialist Tesla – praising Elon Musk and his company's efforts to bring fully-electric cars to the market, while also wanting Volkswagen to become a competitor in the segment.

In an earlier interview with US current affairs show 60 Minutes, Diess said:

”We have to decarbonize the world, because climate change is happening. And to decarbonize the automotive sector, the only way — feasible way forward is electrification.

”It's really the new competitors which are especially challenging for us… coming from software background, battery background, Apple being said to entering at some stage, no? Those are probably the competitors we have to take most seriously.”

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Oliver Blume

During his tenure, Volkswagen has released its ID.3 and ID.4 electric vehicles, as well as announced the upcoming ID.5.

Across its portfolio, the Volkswagen Group will launch additional electric vehicles in the next 12 months.

This includes the MEB-based Volkswagen ID Buzz, and the PPE-based Audi Q6 E-Tron, A6 E-Tron and Porsche Macan.

Blume, 54, has been touted as a potential successor to Diess for some time, even though any changeover was thought to be further off after Diess's contract was extended until 2025, according to Automotive News Europe.

Born in Braunschweig, Germany, Oliver Blume joined the Volkswagen Group in 1994 and, since then, has held management positions for the brands Audi, Seat, Volkswagen and Porsche.

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He has been the Chairman of the Board of Management at Porsche since 2015 and a member of the Group Board of Management since 2018.

“Oliver Blume has proven his operational and strategic skills in various positions within the Group and in several brands and has managed Porsche AG from a financial, technological and cultural standpoint with great success for seven years running," said Pötsch.

"From the Supervisory Board’s point of view, he is now the right person to lead the Group and to further enhance its customer focus and the positioning of its brands and products."