Last week Volkswagen announced that see below CEO, Herbert Diess, would leave his post and be replaced by current Porsche CEO Oliver Blume. At first, it was unclear what led to the sudden departure of Diessbut a new report Bloomberg sheds light on a possible reason.
Bloomberg suggests that Diess was forced out by serious software development delays and mishaps that put a handful of new releases on hold. porsche, Bentley Y Audi. Adding insult to injury, bug-ridden software is what originally delayed the car range electrical Volkswagen ID.
Diess was also not well liked among Volkswagen’s higher-ups, mainly due to his rather tough leadership style. According to reports Bloomberg:
In his effort to transform the company into an electric vehicle leader, he repeatedly clashed with union leaders, warning that VW was losing to Tesla and needed to cut thousands of jobs. But flaws in the automaker’s software unit, Cariad, ultimately eroded support for Diess from the powerful Porsche–Piëch family that makes the decisions.
In December, VW overhauled its board of directors, stripping Diess of some responsibilities and tasking him with fixing Cariad. While there have been many changes since then, Diess hasn’t been able to make the problems go away.
These issues with Cariad delayed the launch of the electric Porsche Macan, which is bad news because Porsche is looking to go public later this year. Audi’s list of new electric vehicles has also been pushed back two years, to 2027. Meanwhile, Bentley’s plan to go all-electric by the end of the decade is in mortal danger. In general, there are some major problems brewing in Germany.
While all of these factors may have contributed to Diess’s downfall at the Volkswagen Audi Group, there are a slightly more scandalous rumor about the events surrounding his sudden dismissal.
We may never know everything that was said at the meeting that ended Diess’ tenure as CEO of Volkswagen. In a somewhat ironic twist, it was in November that it was reported that Diess had survived still vote of confidence of the board.
Diess is not leaving tomorrow. He will remain at the helm of VW until September 1, when his successor, Blume, begins arranging your new role with your current position at Porsche.
Diess was at the forefront of the transition to electric cars from VW. Your spending plan required investing $ 91,000 million in software and electric vehicles during the next five yearsaccording to Bloomberg. Just a year ago, the company automaker has pledged to hire 10,000 people in software operations alone.
We don’t know exactly what will come next for Diess and Volkswagen, but a new era is about to begin for both of them.