Is Oliver Blume the right person for the VW top?

“Overdue” and “too late, but with great force”: This is how two Handelsblatt readers describe the departure of VW boss Herbert Diess at the end of August. His successor will be the previous Porsche boss Oliver Blume, who will then lead both VW and Porsche from September.

One reader writes that his competence is “undisputed”. Another reader adds that Blume has basic requirements that Herbert Diess lacked: “namely, the ability to work in a team, to listen and to be able to apologize if something didn’t go well,” writes the reader.

However, some are skeptical about Blume’s forthcoming double function: “Managing the group and Porsche in one person cannot be a permanent solution,” says one reader. This would weaken Porsche, “unnecessarily and harmful in the long term,” says another. And one of the Handelsblatt readers also doubts whether he can actually do the job better than Diess.

In addition, the Handelsblatt readership sees other challenges for Blume, such as the management culture at VW and the “software chaos”. In addition, Porsche is not comparable to VW in terms of complexity, writes a reader. “In order to bring about a transformation of such a brand colossus, you need a large network of managers who want to walk this path together.”

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Some others are not so positive about the change at the top of VW. Diess had to “lead the world’s largest automaker in the transformation, ‘switching a lame horse to fast,'” argues one reader. “He did the right thing and with the necessary consistency. Because that’s the only way the group can survive.” Another reader thinks that Diess’ entrepreneurial actions were rated too low and the negative ones too high.

We have put together a selection for you from the various letters from the Handelsblatt readership.

VW as an ejection seat

“VW has always been an ejection seat for external managers who have not worked their way up the group for decades. The personnel of Diess shows how difficult it is to counteract such encrusted structures.

Oliver Blume’s competence is undisputed. Managing the Group and Porsche in one person cannot be a permanent solution. Together with the powerful works council, the chaos to preserve vested interests in Wolfsburg will continue.”
Thomas Rauch

Why does someone do something like this to themselves?

“Overall, the VW Group has an unspeakable management culture with yesterday’s executives, who will also be difficult for Mr. Blume to change. In addition, there is the inertia of an outdated organization and the lack of any self-criticism. Weak points are not analyzed and certainly not addressed or changed.

He can expect little or no support from the political environment, and the owning family is not exactly known for being patient.

Why would anyone do this to themselves?”
Thomas Hammerling

Too late, but with great force

“Like almost every major decision at VW, Herbert Diess’s dismissal comes too late, but with great force. It had been clear for a long time that Diess was almost alone in a losing battle and could only inspire through exciting visions.

The appointment of Blume and his dual role weakens Porsche, unnecessarily and damaging in the long run. Here, too, VW is following an old, mostly unsuccessful pattern.”
Kurt George Scheible

>> Read about this: Chronology of the expulsion – this is how VW boss Herbert Diess was replaced

To dismiss this was a mistake for all of Germany!

“This is the biggest mistake the board of directors has made. Blume ‘kept a fast horse fast’ at Porsche. And with the premium wins, he was able to easily hide his transformation issues. In addition, he has served a niche and directs a small manufacturer with Porsche.

Diess, on the other hand, had to lead the world’s largest automaker into the transformation, ‘switching a lame horse to fast’. He did it correctly and with the necessary consistency. Because that’s the only way the company can survive. Diess stands for Germany as a consistent digitization and transformation manager, who is considered a role model even in small businesses. Now he’s being sawed off because everyone has ‘muscle pain’ because of his speed.

It would be better if everyone trains better, wakes up and doesn’t whine around. We are in free fall in Germany/Europe and have brought ourselves into a prosperity inertia that is irresponsible. Instead of spitting on our hands, we hit the brakes.

I myself have made my fortune in China and Germany and predict that Volkswagen will lose its market in China, leaving Europe and the US market weak. The prospects are therefore poor in a highly competitive environment. In addition, mobility is changing: away from ownership towards sharing. The meaning of the car changes with the coming generations. To dismiss this was a mistake for all of Germany!”
Jörg Peter Schultheis

Just out of time

“Just as Martin Winterkorn seemed glued to his chair back then – Herbert Diess’s dismissal was long overdue. A manager who is predominantly smug and arrogant and only cares about his ego is simply out of step.

Many difficult tasks are waiting for Oliver Blume. But at least he seems to have the basic requirements that Herbert Diess lacked: namely the ability to work in a team, to listen and to be able to apologize when something didn’t go well.

I am very skeptical when it comes to e-fuels: Of course it would be nice for the German automotive industry if the combustion engine survived. But is it really economically viable to continue to produce combustion engines with much more effort, while the electric competition gets by with far fewer workers?

I mean, you have to be competitive if you want to survive in the market. The diesel is already as good as dead, and the other internal combustion engines will probably disappear as well. Germany alone cannot stop this.”
Herbert Neumeyer

Is that enough?

“It won’t be easy – VW has had such a spoiled Porsche manager before. And now he’s supposed to stay on track in his group and turn things around at VW. Blume seems aloof and not down-to-earth to me. Applause from the union – is that enough?”
Karl Heinz Wittmann

Herbert Diess

He has headed the group since April 2018, having previously headed the core Volkswagen Passenger Cars brand.

(Photo: dpa)

The whole thing wasn’t balanced

“For an outsider it is difficult to understand what is currently happening at VW. As far as the work of Mr. Diess is concerned, who certainly made a few mistakes in internal and external communication, in my opinion the positive entrepreneurial actions are underestimated and the negative ones are overestimated, so the whole thing is not evaluated in a balanced manner.

In view of his multiple workloads and the planned Porsche IPO, Mr. Blume will find it difficult to do things better.”

Hjalmar Kuntz

The “software chaos” will be the biggest challenge

“In addition to the many tasks that await Mr. Blume, the ‘software chaos’ is likely to be the greatest challenge. It will be exciting to observe how Mr. Blume, as a machine builder with a lot of production experience, will tackle the highly complex topic of software development.

Delayed software development projects are difficult to solve with more resources, but often only a profound conversion helps, both in terms of the architecture of the software and the organization.

From my point of view, there is no way around a kind of CTO who has the necessary experience in the development of safety-critical software and can deal with CARIAD in terms of organization and content.”
Florian Leitner-Fischer

Oliver Blume is the antipode of Herbert Diess

“Oliver Blume is the antipode to Herbert Diess. With the success of Porsche and his clear communication, he has gained the trust of many stakeholders at VW.

But Porsche is not comparable to VW in terms of complexity. In order to bring about a transformation of such a brand colossus, you need a large network of managers who want to walk this path together. This requires people-catcher qualities and at the same time assertiveness to take necessary measures in a timely manner in order to be able to keep up with sprinters like Tesla and Elon Musk.

In my view, being able to accomplish this Herculean task while continuing to run Porsche is not feasible in a group with very powerful supervisory board members. Because Blume does not have the decision-making power of Elon Musk as it does with Tesla.

That’s why Blume must succeed in winning over the most important decision-makers at VW for his approach, eliminating individual interests against this new path and, above all, setting the right course so that VW can continue to hold its own against the competition. That costs a lot of time, energy and communication in addition to the technological challenges. Both are of equal importance.”
Harald Smolak

Blume will only be the transitional candidate

“The dismissal came far too late; with his absolutely exaggerated ego, Herbert Diess should never have become CEO.
The fault lies primarily with the majority shareholder (AR) Piëch/Porsche due to his behavior towards the board of directors.

Blume will only be the transitional candidate until the families break with him (example Wiedeking). The fundamental decision to see the future only in the electric car is wrong due to the absolute dependence on China (see BMW ‘New Class’).

As long as the VW board works against its own employees and does not listen to experienced practitioners from the plants, the problems will continue.
Horst Krancher

Diess’ strategy was correct

“The dismissal was a mistake. His strategy was right. The works council is unnecessarily too strong.”
Manfred Sachsenmaier

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More: Last week, Handelsblatt readers debated where Germany stands in the fight against climate change.

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