Volkswagen ( OTCPK:VWAGY ) announced the departure of current CEO Herbert Diess effective September 1, whereafter Porsche CEO Oliver Blume will assume the tole.
Diess’ u nexpected departure follows a controversial tenure at the top of the German automaker. The Austrian executive helmed the company amid emissions scandal. Diess was charged with stock market manipulation in 2019 over the issue. He also came under fire in the same year for telling employees “ EBIT macht frei ”, a reference to the phrase “Arbeit Macht Frei” emblazoned on the gates of Nazi-run concentration camps.
As of late, Diess has found himself in heated battles with Germany’s strong labor unions . Indeed, cost cutting measures and realignment of the business has consistently put the the group at odds with his leadership .
Shares fell sharply shortly after the announcement before paring losses into the afternoon session.
His successor, Oliver Blume, currently heads Porsche AG ( OTCPK:POAHY ) and will assume the top role with a period of assistance from current CFO Arno Antlitz in acceding to the role. Antlitz will transition to a new role as COO.
“Oliver Blume has proven his operational and strategic skills in various positions within the Group and in several brands and has managed Porsche AG from a financial, technological and cultural standpoint with great success for seven years running,” Hans Dieter Pötsch, Chairman of the Supervisory Board, said. “From the Supervisory Board’s point of view, he is now the right person to lead the Group and to further enhance its customer focus and the positioning of its brands and products.”
His transition to the top role comes as Volkswagen continues to pursue an IPO for the prized Porsche brand .
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Volkswagen names Porsche-head as new CEO, succeeding Herbert Diess