VW boss making early exit

Herbert Diess is stepping down as chief executive of Volkswagen after four years in the job and will be replaced by the head of Porsche, Oliver Blume, Europe’s top carmaker has announced.

It has been reported the Porsche and Piech families, who own over half the voting rights and a 31.4 per cent equity stake in Volkswagen, pressed for a change at the top.

Diess, pictured, will leave his role on September 1, three years before the end of his contract in 2025, and his departure follows a series of missteps over strategy and communication style.

Blume, who has held a number of roles at Volkswagen Group since joining the company in 1994, will retain his position at Porsche alongside his new responsibilities “including in the event of a possible IPO [initial public offering]”, a statement said.

Volkswagen executives have targeted a possible stock market flotation of Porsche in the fourth quarter to help fund its shift to an electrification-oriented carmaker, reports Reuters. 

Diess’ future at Volkswagen has been in doubt on multiple occasions, including last year when he stated a mismanaged transition to electrification could cost the carmaker more than 30,000 jobs. 

He also came under fire for his frequent public warnings the marque was falling behind electric-vehicle rival Tesla.