Volkswagen CEO Diess is stepping down in stunning transfer

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

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

However a Reuters report, citing unnamed sources, stated the Porsche and Peich households – amongst whom the vast majority of the voting rights at Volkswagen – pressed for a change on the helm. The corporate didn’t instantly reply to a request for touch upon that report.
Nonetheless, he was capable of preserve that scandal principally within the rearview mirror of the corporate. And so they targeted extra on electrical automobiles than many established automakers, positioning Volkswagen for a significant turnaround.

electrical focus

VW has stated it is going to spend €89 billion on creating EVs over the following 5 years, almost half of its deliberate spending in that point, and goals to signify 1 / 4 of gross sales for EVs by the tip of 2026.

The variety of battery EVs bought by VW almost doubled in 2021 to almost 453,000 globally, reaching No. 3 after solely Tesla and Normal Motors bought pure EVs – and a lot of the latter’s gross sales in a Chinese language three way partnership. resulted from. VW surpassed all different automakers, together with Tesla, in European EV gross sales at 310,000 automobiles.

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

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

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

Volkswagen has already sold electric cars in key markets this year

Final 12 months Toyota reported whole 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 bought.

What’s extra, Volkswagen’s shares have additionally lagged beneath 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 grow to be Chief Working Officer.

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

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