Time's Up for Blume? Porsche and VW Shareholders Aren't Feelin' the Dual Role
Shareholders Urge Blondel's Resignation from Porsche's Senior Leadership Ranks at Volkswagen - Shareholders Pressure Volkswagen to Remove Blume from Porsche Leadership Role
VW and Porsche have hit a rough patch, and shareholders are taking aim at Oliver Blume, the CEO juggling both companies. At the virtual VW Annual General Meeting, Ingo Speich from Deka fired the first shot, urging Blume to choose one of the sinking DAX ships. He commented, "You're stuck in the middle, and there's only 24 hours in a day."
To save Volkswagen, Blume needs to focus, Speich points out. "With both hands on the wheel, you can't steer both boats," he said, with other shareholders chiming in, criticizing his part-time status. Hendrik Schmidt from DWS adding, "End this dual role ASAP!"
Blume disagrees, calling the dual role a "winning formula." In the current chaos, the benefits outweigh the drawbacks according to him. But he hinted that this arrangement doesn't have a lifetime guarantee. The Supervisory Board holds the final say.
Volkswagen's struggling journey
Blume addressed the daunting challenges Volkswagen faces, including a rapidly changing world and uncertainty from President Donald Trump's trade policy in the US. Despite the hurdles, Blume introduced a plan for the North American business, exempting US subsidiaries from diversity goals at the group level this year. The move follows Trump's demands to end programs promoting disadvantaged groups.
The Blume conundrum
Recent changes in the Porsche AG management board have stirred the waters. Lutz Meschke, considered Blume's groomed successor, stepped down, while Michael Steiner, head of development, will take over as deputy CEO. This shift hints at a possible power shuffle in Stuttgart, fueling speculation that Blume may be preparing to pass the baton.
- Oliver Blume
- Part-time CEO
- Crisis
- Volkswagen
- Porsche
- Dual role
- DAX companies
- Donald Trump
- Trade policies
Behind the Scenes:
- Strategic Moves: Under Blume's leadership, Volkswagen is working on a new master plan for North American operations to align products with American tastes and face trade policy challenges.
- Operational Challenges: Volkswagen grapples with import tariffs on vehicles, particularly affecting brands like Audi and Porsche. The company attempts to combat tariffs by expanding manufacturing capabilities in the US, including the plant in Chattanooga, Tennessee, and upcoming facilities.
- Porsche's ReCreate: Blume has orchestrated significant changes in Porsche's Executive Board, bringing in fresh talent like Vera Schalwig and Joachim Scharnagl. The generational shift should drive Porsche forward while leveraging their extensive experience and connections.
- Product Innovation Hub: Blume has lauded Michael Steiner's expertise for developing Porsche's future product portfolio, an essential aspect of securing the brand's competitive edge in the market.
- While facing criticism from shareholders for his dual role as CEO of both VW and Porsche, Oliver Blume insists on the winning formula of his part-time leadership, despite the current challenges faced by the EC countries' DAX companies, such as the trade policies of President Donald Trump.
- As Volkswagen navigates its struggling journey and the implications of President Trump's trade policies, Oliver Blume introduced a plan for the North American business, seeking to exempt US subsidiaries from diversity goals at the group level to better align with American tastes, and also addressing the operational challenge of import tariffs on vehicles like Audi and Porsche by expanding manufacturing capabilities in the US, including the plant in Chattanooga, Tennessee, and upcoming facilities.
