Tough leadership style and software fiasco: why the head of Volkswagen suddenly resigned

On the evening of July 22, Volkswagen unexpectedly announced the resignation of Chairman Herbert Diess. Then the automaker said that the decision was made by mutual agreement, but it must be said that the media have been talking about the possible dismissal of Diss for a long time. And there were all the prerequisites for this.

Diss was fired for several reasons. But the final straw was the fiasco of Volkwagen’s software division, which Diess took over after the board stripped him of some of his key responsibilities as the company’s CEO in December 2021. As Bloomberg has learned, Diess has been blamed for serious software development delays that have negatively affected the launch dates for key electric models of Porsche (Macan EV), Audi (Project Artemis) and Bentley. Also, due to software issues, the debut of VW ID had to be delayed, and customers were forced to continue visiting dealerships to install software updates, instead of receiving them over the air as planned.

But software problems aren’t the only reason Diss was fired. It is likely that his tough leadership style also contributed to his departure, especially after the head of Volkswagen announced the upcoming reduction of several thousand jobs due to lagging behind the main competitor in the electric car market in the face of Tesla.

Members of the supervisory board informed Herbert Diess of his dismissal as CEO of Volkwagen on July 21, giving 24 hours for reflection and consultation with lawyers. In the end, he agreed with this decision and on July 22, the Volkwagen Group officially announced the main change in the top management of the company in 2022.

The post of CEO of Volkswagen after the departure of Diess will take the head of the brand Porsche Oliver Blume (Oliver Blume). He will take up his new position on September 1, while retaining his previous post.

Source: Trash Box

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