Volkswagen CEO Herbert Diess to step down
Volkswagen Group CEO Herbert Diess is stepping down after seven years at the helm, leaving the company three years before the end of his contract.
Diess officially left the role on 1 September 2022 following what Volkswagen described as a “mutual agreement.” He was succeeded by Porsche CEO Oliver Blume, who also continued to lead Porsche alongside his new responsibilities within the Volkswagen Group.
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A challenging but transformative tenure
In a message shared before his departure, Diess reflected on what had been a demanding first half of 2022 and wished colleagues an enjoyable summer break.
Hans Dieter Pötsch, Chairman of Volkswagen’s Supervisory Board, praised Diess for leading one of the most significant transformation periods in the company’s history.
According to Pötsch, Diess:
- Helped steer Volkswagen through a turbulent period following the diesel emissions scandal.
- Introduced a fundamentally new corporate strategy.
- Strengthened the Group’s long-term competitiveness.
- Accelerated Volkswagen’s transition towards electrification.
His leadership is widely credited with repositioning Volkswagen as one of the world’s largest electric vehicle manufacturers.
If you’re interested in how the electric vehicle market has evolved, you may also enjoy our guide explaining whether buying a second-hand electric vehicle is worth it, which explores ownership costs and battery considerations.
Driving Volkswagen’s electric future
One of Diess’s biggest achievements was overseeing Volkswagen’s shift towards electric mobility.
During the first half of 2022, Volkswagen increased global electric vehicle deliveries by around 27%, despite widespread supply chain disruption affecting vehicle production across the automotive industry.
Having taken charge shortly after the Dieselgate emissions scandal, Diess made electrification the centrepiece of Volkswagen’s recovery strategy.
Under his leadership, Volkswagen launched its dedicated ID. family of electric vehicles, investing heavily in battery technology and future mobility.
Another related read is our feature on government electric vehicle grants and incentives, which explains how policy changes have influenced EV adoption across the UK.
Challenges behind the scenes
Despite the progress made, Diess’s tenure was not without controversy.
He reportedly faced criticism from labour representatives and employee groups over concerns surrounding workforce restructuring as Volkswagen accelerated its transition from combustion engines to electric vehicles.
Although discussions became increasingly tense during 2021 and 2022, Diess remained in post until the agreement was reached for his departure.
Oliver Blume takes over
Volkswagen’s Supervisory Board expressed confidence that Oliver Blume was the right choice to continue the Group’s transformation.
Blume has spent decades within the Volkswagen Group, joining in 1994 before holding several senior leadership positions across the business.
Since becoming Porsche CEO in 2015, he has overseen the continued success of the brand while also playing an important role in Volkswagen Group strategy.
His experience in premium performance vehicles and electrification made him a natural successor to continue Volkswagen’s long-term plans.
What happens next?
While no immediate strategic changes were announced following Blume’s appointment, industry observers expected Volkswagen to continue expanding its electric vehicle range while maintaining investment across its core brands.
With the automotive industry continuing to evolve rapidly, leadership stability will remain important as manufacturers navigate electrification, software development and global supply chain challenges.
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