FRANKFURT — The appointment of Oliver Blume as the subsequent boss of Volkswagen Group heralds a change in administration model that’s anticipated to exchange the erratic and unpredictable angle of his predecessor with a extra team-based tradition.
An extended-time Volkswagen government who joined the carmaker in 1994, the 54-year-old Blume has hammered residence the significance of teamwork and bringing employees into decision-making in almost each interview he has given — a distinction to present CEO Herbert Diess’ confrontational angle.
Blume, who has been CEO of Porsche since 2015, will exchange Diess as VW Group CEO on Sept. 1 whereas remaining accountable for Porsche, VW mentioned on Friday.
“Oliver Blume is a workforce participant, who doesn’t push himself into the limelight,” a supply near Blume mentioned. But when there is no such thing as a consensus, he’s not afraid to have the final phrase, the particular person mentioned.
Blume’s place that has been elevated additional not too long ago following the announcement of plans to listing Porsche later this yr in a possible mega-IPO.
By efficiently working the sports activities automotive maker for years, he has earned the belief of the Porsche and Piech households, who management VW Group’s largest shareholder, Porsche Vehicle Holding SE, The households maintain greater than half of the voting rights in VW Group, successfully giving them full management.
The Porsche model is Germany’s most worthwhile automotive maker and the money cow of the group. It has a 16 % revenue margin which it goals to spice up to over 20 % in coming years.
Blume will take over from Diess on the helm of VW Group to determine a “management tradition that makes teamwork a high precedence,” VW mentioned.
That’s one thing Diess has struggled with.
It’s unclear whether or not Blume’s consensus-driven method will succeed with Volkswagen’s highly effective works council, which has been a relentless supply of hassle for Diess in his makes an attempt to push by reform.
It additionally stays to be seen whether or not Blume shall be as a lot of an electrification purist as Diess, who advocated for focusing completely on battery-electric autos.
Although Blume has overseen the manufacturing of Porsche’s first full-electric automobile, the Taycan, he has additionally proven curiosity in different low-carbon applied sciences, investing in a wind-powered e-fuels manufacturing facility in Patagonia.
A separate supply near Blume, whose earlier postings included management positions at VW Group divisions Seat and Audi, described him as “not a revolutionary who desires to fully flip issues round.”
An individual aware of the plans mentioned that Blume’s appointment as VW Group CEO was not essentially an indication that the deliberate itemizing of Porsche could be delayed or pulled, at the same time as investor skepticism relating to the IPO has slowly began to creep in.
Additionally, the truth that he’ll run each Volkswagen and division Porsche, which shall be two individually listed entities if the IPO plans materialize, will not be taking place too nicely with all traders.
“We don’t assume this can be a good concept, as each organizations will want clear and current management in upcoming months,” Bernstein’s analyst Daniel Roeska wrote.