Volkswagen CEO to go away in shock transfer

The corporate introduced Friday that CEO Herbert Dias would get replaced by Oliver Bloom, who heads the Volkswagen ,VLKAF,The Porsche Efficiency Automobile Division.

Volkswagen, the world’s second-largest automaker, didn’t give any cause for Diess’ exit.

however one Reuters report Citing unnamed sources, the Porsche and Peich households – amongst whom Volkswagen holds nearly all of voting rights – pressed for a change within the helm. The corporate didn’t instantly reply to a request for touch upon that report.
Nonetheless, he was in a position to hold that scandal largely within the rearview mirror of the corporate. and he centered electric vehicles Greater than many established automakers, Volkswagen’s place is a . for major changes,

electrical focus

VW has stated will spend €89 billion Over the following 5 years, it is going to spend about half of its deliberate spending on creating EVs, and it goals to signify 1 / 4 of EVs gross sales by the top of 2026.

The variety of battery EVs offered by VW practically doubled in 2021 to almost 453,000 globally, reaching No. 3 after solely Tesla and Common Motors offered in pure EVs – and many of the latter’s gross sales have been a Chinese language mixed. from the enterprise. VW surpassed all different automakers, together with Tesla, in European EV gross sales at 310,000 automobiles.

Tesla nonetheless offered greater than twice as many pure EVs as VW in 2021 — and EVs represented solely 5% of VW automobiles offered final 12 months — however the change in focus underneath Dias was essential to the corporate’s future plans.

The corporate’s chairman of the board, Hans Dieter Pötz, stated in a press release: “Herbert Diess has been instrumental in driving the corporate’s transformation. The Group and its manufacturers are viable for the long run; strengthened its modern capabilities and incomes energy Has gone.” , “Not solely did he steer the corporate via extraordinarily turbulent waters, however he additionally carried out a radically new technique.”

However not all the things was pink. Whereas Volkswagen could also be forward of most conventional automakers within the deliberate change to electrical automobiles, it has fallen additional behind Toyota within the race for complete automobile gross sales — a key metric within the area.

Final 12 months Toyota reported complete gross sales of 10.5 million automobiles in 2021, exceeding Volkswagen by 1.5 million. In 2019 pre-pandemic, Volkswagen outpaced Toyota by 200,000 automobiles with 10.9 million automobiles offered.

What’s extra, Volkswagen’s shares have additionally lagged underneath Diess, gaining solely 10% since being named CEO in 2018 — on the very backside. Toyota ,tm,60% revenue in that point. to date this 12 months, Volkswagen ,VLKAF,Shares listed in Germany are down 28%.

As a part of its administration shakeup, Chief Monetary Officer Arno Enlitz will develop into Chief Working Officer.

— CNN Enterprise’ Peter Valdes-Depena contributed to this report.