Volkswagen CEO Diess steps down in surprise move

The company announced Friday that CEO Herbert Diess will replace Oliver Bloom, president of Volkswagen (VLKAF)Porsche performance cars division.

Volkswagen, the world’s second largest automaker, did not provide a reason for the diss to exit.

But the Reuters report Citing unnamed sources, the families of Porsche and Pech – who hold the majority of the voting rights in Volkswagen – have lobbied for a change on their head. The company did not immediately respond to a request for comment for this report.
However, he managed to put that scandal mostly in the company’s rearview mirror. focus on electric car More than many well-known automakers, which puts Volkswagen in a good position big shift.

Electrophoresis

Volkswagen said it It will spend 89 billion euros Over the next five years on electric vehicle development, about half of the spending planned at the time, and aiming for electric vehicles to account for a quarter of sales by the end of 2026.

The number of electric batteries Volkswagen sold nearly doubled in 2021 to nearly 453,000 globally, putting it third only to Tesla and General Motors in selling pure electric vehicles — most of the latter’s sales came from a Chinese joint venture. Volkswagen outperformed all other automakers, including Tesla, in European electric vehicle sales at 310,000.

Tesla still sells more than twice as many pure electric cars as VW in 2021 – and electric vehicles accounted for just 5% of VWs sold last year – but the shift in focus under Deiss has been important to the company’s future plans.

“Herbert Diess has played a key role in driving the company’s transformation. The group and its brands are viable for the future; their innovation capabilities and earning power have been strengthened,” said Hans-Dieter Buch, Chairman of the Company’s Board of Directors, in a statement. . “He has not only steered the company through extremely turbulent waters, but also implemented a fundamentally new strategy.”

But it wasn’t all rosy. While Volkswagen may be way further behind most traditional automakers in its planned switch to electric vehicles, it has fallen further behind Toyota in the race for total vehicle sales — a key metric in the sector.

Volkswagen has already sold electric cars in major markets this year

Toyota last year recorded total sales of 10.5 million vehicles in 2021, surpassing Volkswagen by more than 1.5 million. Before the pandemic in 2019, Volkswagen outstripped Toyota by 200,000 vehicles with 10.9 million vehicles sold.

On top of that, Volkswagen shares have also fallen under Dess, having only gained about 10% since his appointment as CEO in 2018 – much less. Toyota (TM)60% gain in that time. So far this year, Volkswagen (VLKAF)Germany’s listed shares fell 28%.

As part of the management change, Chief Financial Officer Arno Antlitz will become chief operating officer.

CNN Business Peter Valdes Dabbana contributed to this report.

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