‘Last’ allies
The sudden departure of Volkswagen Group CEO Herbert Diess has reportedly been initiated by the Porsche-Piëch family. The patience of those ‘last allies’ of Diess within the top of the group would have run out.
Last Friday evening the news suddenly came out that Herbert Diess, CEO of the Volkswagen Group, is stepping down. The lecture at the time was that he ‘resigns by mutual consent’, but of course it cannot come as a surprise that the departure did not come from Diess’ own ideas. Automotive News reports based on insider sources that Diess has to pack his bags because the Porsche-Piëch family has lost confidence in him.
That family, descendants of Porsche founder Ferdinand Porsche and former Volkswagen star Ferdinand Piëch, was regarded as an important ally of the CEO during previous struggles of Diess within the group. In December, Diess was ‘rescued’ by the family, when it voted to keep the CEO. The Porsche-Piëch family has a majority vote within the board of directors and was therefore able to do this. At the time, the family still stood behind Diess, despite criticism about his plans to cut many jobs and his struggles with the workers’ union.
Now the measure for the mighty heirs is apparently full. Automotive News reports that, among other things, the disappointing course of the Cariad project seems to be the last straw. That subsidiary of the Volkswagen Group is responsible for developing software for future EVs, but is not performing as it should. However, Diess is also known as a fairly progressive leader who does not shy away from risky steps and reforms for a strong electric future. An attitude that has not been appreciated several times within the top of Volkswagen. With Oliver Blume, the CEO of Porsche, Volkswagen will probably get a more conservative CEO at the helm.
Diess (63) would have heard the decision on Friday immediately after returning from a business trip in the US and then agreed with the departure and the conditions attached to it after consultation with legal advisors. Diess is said to be able to count on a considerable sum of money. According to his new contract that came into effect earlier this year, Diess would remain on until October 2025 and would still be paid the full whack (tens of millions) for this despite his departure. Apparently it is worth a lot to the Volkswagen Group to put someone else at the helm.
– Thanks for information from Autoweek.nl