Volkswagen shares fell 3.2% after the German automaker decided to replace current CEO Herbert Diess amid the company’s shift to electric vehicles.
The automaker announced Friday that Diess will step down on Sept. 1 and will be succeeded by Oliver Blume, who is also Porsche’s chief executive.
The outgoing chief executive had repeatedly clashed with unions and the move comes after a new internal row over slow progress on software development for the company’s new generation of electric vehicles.
Analysts say the CEO replacement comes at a bad time as the automaker prepares for Porsche’s possible entry into the market, and point to the fact that Blume is expected to lead Volkswagen Group while remaining Porsche’s chief executive as a negative.
Source: Capital
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