Volkswagen CEO Herbert Diess to be replaced by Porsche chief in major shake-up

Photo Illustration by Grayson Blackmon / The Verge

In a major shake-up, Volkswagen CEO Herbert Diess is stepping down as head of the world's second- largest automaker.

On September 1st, the company will have a new chairman in the form of Blume. Hans Dieter Ptsch, who chairs the company's governing supervisory board, thanked Diess for his service and for his "key role in advancement of the company."

It was a surprise since Diess had narrowly avoided being ousted by the VW board. VW has clashed with labor unions and other stakeholders over the direction of the company. The company was in the process of raising more funds through an initial public offering ofPorsche to help fund its push into electric vehicles and software services. The VW is governed by a board that gives seats to labor unions.

In an interview with the editor-in-chief of The Verge, VW CEO Herbert Diess talked about how his job is different from most automotive CEOs.

He said that it is complex and needs more discussion. You have to defend your case as a shared interest in the future of the company because it doesn't allow for random decisions.

As investors voiced concerns about the direction of the company, it was clear that the position of the head of the company was uncertain. In the wake of the Dieselgate scandal, he was hired away from BMW to work on regaining trust from consumers. He avoided prosecution for his part in the scandal.

Eins was one of the most aggressive in pushing the auto industry to embrace electric vehicles. He tried to mimic Musk, but couldn't. It is not clear what this leadership shake-up will mean for VW.

VW was said to be trying to catch up withTesla in the sale of electric vehicles and often imposed new directives on their workers. Reducing the company's production time per vehicle from a current 30 hours to 10 hours seems to be close to being achieved at its Berlin facility. Factory workers helped navigate the industry's larger crises, such as the chip shortage.

China is the world's largest EV market. The economic ministry in Germany refused to give guarantees for new investments in China because of concerns over human rights.

It was thought that he would have more time to wait for a successor to Diess. Since 2015, he has been the chair of the board of management at the company, which is similar to the CEO's role.