There are many times that reality is stranger than fiction. Game of Thrones is not only one of the most famous and successful series in history, it could also serve as the basis for many plays and appointments in top business management. A dead king, put king. The Volkswagen Group has changed its CEO, Diess has gone out the back door in a move that hides many shadows driven by one of the most powerful clans in the automobile industry. This is how the dismissal of Herbert Diess has been forged.
It must be said that good old Herbert had been between a rock and a hard place for months. After a series of doubtful decisions, the German CEO had seen his area of influence reduced. Cornered behind the table of his imposing office at Volkswagen headquartersDiess has not been able to overcome a strategy that has erased him from the map. The delays and the discontent of many workers have been the great trigger for the Porsche-Piech clan to have taken the final step.
The pressure movement started to take shape a week ago. The combative Diess has never given his arm to twist, a firm and determined position that has ended up leaving him without the support of the multimillionaire and influential Porsche family., which has been the last nail in the coffin of Diess as CEO of the Volkswagen Group. Losing the support of the group’s largest shareholder cannot be good, and we refer to the evidence. There is no fidelity in high places, and the Porsche family has decided to replace the CEO in a not very clean move.
According to rumors published by Automotive News, the decisive moment was on July 20, during a meeting of the Volkswagen Supervisory Board, where the Porsche family, officials of the State of Lower Saxony and part of the union leadership of the conglomerate. All parties decided that the time had come to say goodbye to Herbert Diess without him being present; for not being there he was not even in the country, since he was visiting the Volkswagen factory in Chattanooga, United States.
Caught by surprise, a replacement has quickly been found, one that has the full trust of the powerful family. Oliver Blume has risen to the throne of the Volkswagen Group, while remaining as head of the Porsche brand. During their years of service, those from Stuttgart have gained recognition, prestige and a lot of money. The electrification path, and the way in which Blume has approached it, has had great weight in the final decision. Quite the opposite of what Diess had shown so far.
Looking to the future Blume will have to deal with several important fronts. The company’s electrical strategy will have to be reassessed and redirected, but above all it will be necessary to correct the problems caused by the delay in the development of the software of the electric vehicles with the PPE platform. Other fronts will be the IPO of Porsche, in addition to having to calm down very agitated waters with the union leaders, another of the beneficiaries of the change of crown.