By Sam Boughedda
Volkswagen AG (OTC:VWAGY) Chief Executive Herbert Diess is stepping down, the company announced Friday.
Diess took over at Volkswagen following the diesel emissions scandal and has led the company into the electric age. Volkswagen, one of Germany's most significant global companies, said Diess played a key role in advancing the transformation of the company.
The move is effective September 1, with Oliver Blume succeeding Diess while continuing in his role as Chairman of the Board of Management of Porsche AG. In addition, Volkswagen's CFO, Arno Antlitz, will assume an additional role as COO on the Group Board of Management.
According to a report from Reuters, shortly after the news, Porsche and the Piech Family saw a need for a CEO change at Volkswagen.
Diess' future at the car company had been questioned several times during his four-year stint. He had recently clashed with Volkswagen's works council regarding his electrification strategy and management style.
"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. 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", said the Chairman of the Supervisory Board, Hans Dieter Pötsch.