Diess leaves the leadership of the Volkswagen brand (but remains Group CEO)

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change at the top

The confirmation came with an official communication. Herbert Diess maintains the position of CEO of the internal Group but the Supervisory Board expects that he will resolve the critical issues that have arisen in recent months

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Herbert Diess (Epa)

The confirmation came with an official communication. Herbert Diess maintains the position of CEO of the internal Group but the Supervisory Board expects that he will resolve the critical issues that have arisen in recent months

3 ‘of reading

The rumors about possible changes at the top of the Volkswagen Group had been known for several days, but the final choices were less traumatic than those assumed on the eve. The fact is that the Group’s supervisory board has decided that from 1 July the new CEO of the Volkswagen brand will be Ralf Brandstatter, since 2018 he has been chief operating officer. It will therefore be up to him to replace Herbert Diess in the position, who however maintains the responsibility of CEO of the entire Group. It seems, however, that until the very end the option of entrusting the management of Vw to the current CEO of Porsche Oliver Blume was one of the possible solutions.

It was probably preferred to focus on a figure that of Brandstatter who was already part of Volkswagen rather than kick off an earthquake that would have questioned the positions already consolidated within the Group. At the base of the change at the top of Volkswagen are the problems encountered both in the launch phase of the new Golf coincided with the blocking of deliveries of the eighth generation and the same number of critical issues encountered in the ID.3 software, the first battery model intended among other things, to start the electric revolution and the electrification plan undertaken by the world’s first automotive group.

At this point, the position of Herbert Diess who remains at the helm of the Group, but remains under scrutiny by the Supervisory Board, which would have asked him to resolve the various critical issues that have arisen in recent months, is to be defined at this point.

The software node
Specially created the new IT division Car.Software
The first problems in Volkswagen had manifested themselves at the end of last year on a first batch of 20,000 copies of the ID.3 which would have been assembled with incomplete software, consequently requiring a manual update entrusted to a team of engineers in the phases following the production. “Creating a new, powerful electronic and IT architecture is a challenge that can lead to difficulties or delays that we are currently facing,” said a spokesman for the German company. Adding that “The timing remains valid: the launch on the market of ID.3 remains scheduled for the summer of 2020” as indeed is happening. The complexity can be understood from the fact that the code of the infotainment system alone which weighs for a fifth of the entire IT group, contains about 100 million lines, compared to the 10 million of a car built in 2010. Among the else the new Golf is based on an advanced architecture and not on a totally new IT platform like that of the ID.3. It is no coincidence that to solve software problems, a new division has been created, Car.Software which will be able to count by 2025 on 10,000 technicians and specialists who will be responsible for developing the software not only for new cars, but also for production, administrative as well as commercial processes.

The structure of the Volkswagen group
The current operational structure of the Volkswagen Group commissioned by CEO Diess. One of the most important decisions due to the current eco of the Vw Herbert Diess Group is the new strategy developed for the entire German Group and which will determine its strategies for the near future also in terms of operating scenarios. In fact, the Volkswagen group is currently organized into four different divisions. The first which was called Volume includes the brands Volkswagen, Skoda and Seat. A second renamed Premium includes the Audi brand only, while the third to which, on the other hand, has been assigned the title of Superpremium incorporates the brands Porsche, Lamborghini, Bugatti, Bentley. Finally, the fourth one, renamed Work vehicles, is attributable to all the truck brands of the Group, namely Scania and MAN and VW commercial vehicles.



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