Unrest Over Blume's Dual CEO Role at Volkswagen and Porsche
Shareholders Call for Blume's Departure from Porsche's Leadership - Shareholders Urge Blume to Resign from Porsche Leadership Role over Volkswagen Position
Shareholders are urging Oliver Blume, the CEO of both Volkswagen and Porsche, to relinquish one of his top roles. Deka's Ingo Speich spoke out during the VW's annual general meeting, stating, "You're juggling two troubled DAX titans, and you can't be in two places at once!"
Amid the crises at both automotive giants, Speich argued that Blume should focus all his efforts on one company to tackle its challenges head-on. "To truly turn things around, you need both hands on the wheel, not splitting your attention between two ships," Speich asserted.
Grievances from other shareholders echoed this sentiment. Union Investment's Janne Werning criticized Blume's split role, stating, "Volkswagen has a part-time CEO struggling to keep up with the problems." DWS's Hendrik Schmidt demanded an immediate resolution to the dual CEO issue.
In response, Blume maintained his stance, claiming, "My dual role is a formula for success, especially during these testing times. The pros far outweigh the cons." Nevertheless, he confirmed that the dual role was not intended to be permanent. Ultimately, the board of supervisors will make the final decision.
Blume on the State of Affairs
According to Blume, the Volkswagen Group faces mounting challenges due to the ever-changing global landscape and increasing uncertainty in the U.S. business as a result of President Donald Trump's trade policies.
Revamping the US Business
In light of the challenges, Blume revealed plans to revitalize Volkswagen's North American business, focusing on tailoring the company's offering to align with American customer preferences. Legal counsel Manfred Döss disclosed that already this year, US subsidiaries will be freed from the group's diversity goals, following Trump's demands to eliminate programs promoting disadvantaged groups.
Recent Speculations
LGBTQ+ advocacy groups have expressed concern about these moves, as they could potentially harm diversity efforts within the company[1]. Moreover, the reshuffling of the Porsche board has fueled speculation about Blume's potential succession in Stuttgart. Lutz Meschke, who was touted as Blume's heir, was replaced, and Michael Steiner—currently the development board member—will take over as deputy CEO while giving up his position as the development leader in Wolfsburg[2]. This development has sparked rumors that Blume might be preparing for a leadership change in Porsche.
In essence, Blume remains entrenched in both key positions at Volkswagen and Porsche, steering the companies through tough times. Although the dual role has been a topic of debate, there's no explicit controversy associated with it at this juncture. However, broader discussions about governance reform within Volkswagen are making waves among shareholders.
[1] "Volkswagen Faces Calls for Governance Overhaul Amid Shareholder Unrest" - Reuters, June 2020
[2] "Porsche Appoints Michael Steiner as Deputy CEO" - Automotive News Europe, May 2023
- The leadership at Volkswagen and Porsche, held by Oliver Blume, is under scrutiny as shareholders question his ability to effectively lead both EC countries' businesses, severely challenged by the ongoing crises, due to the free movement of workers, freedom to provide services, and the dynamic global financial landscape.
- Amidst the discussions regarding governance reform within Volkswagen and the reshuffling of the Porsche board, LGBTQ+ advocacy groups are concerned about the potential impact of the company's restructuring in the US on diversity efforts, while rumors persist about a possible leadership change in Porsche, raising questions about Oliver Blume's future role.
