volkswagen emden plant

Volkswagen AG families Porsche and Pieche regain control post-Diess

Volkswagen's Emden Plant (Credit: Volkswagen)

Volkswagen AG’s two controlling families — the Porsches and Pieches — are looking to regain control of the automaker’s strategy moving forward following the removal of Herbert Diess as CEO and Board Chairman.

The families reportedly are looking for a calmer and less controversial future without Diess, Reuters said, citing people familiar with the matter. With Porsche set to be listed for public trading, the Porsche and Piech families are aiming for more company control.

One person who is close to the situation said the families are more interested in keeping “a closer eye on the implementation of strategic guidelines.” Diess, who pushed heavily for the Group to transition to electric vehicles more aggressively than others, ruffled feathers on several occasions through the past few years. Most recently, Diess’s suggestion that a slow electrification transition would cost thousands of jobs resulted in a labor union scuffle with the former VW frontman. Diess was ultimately grilled by a supervisory board and disciplined internally.

However, Diess’s tenure seems to have left a lasting impression on the families. Diess “tested the families’ patience,” according to the sources, and they now plan to keep a shorter leash on VW as a whole. They plan to influence more decisions, something they have not deemed a possibility for some time.

Porsche and Piech are already letting their influence among larger company decisions be heard. Volkswagen is set to appoint Porsche head Oliver Blume to Diess’s position. He will remain the boss of Porsche AG, as well, and comes highly preferred by the families.

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Volkswagen AG families Porsche and Pieche regain control post-Diess
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