Introduction to Oliver Blume’s Resignation
Oliver Blume will step down as CEO of German sports car maker Porsche, the company announced on Friday. He also serves in the same role at the Volkswagen Group, Porsche’s parent company, a dual position that has drawn heavy criticism during the German automotive industry’s years of trouble. Blume will remain at the helm of Volkswagen, the Porsche supervisory board said in a statement.
Background on Blume’s Role
He has been CEO of Porsche since 2015 and took over the management of Volkswagen in 2022 following the resignation of Herbert Diess. Porsche said Blume’s likely successor was Michael Leiters, who previously served as CEO of British sports car maker McLaren.
Criticism of Blume’s Dual Position
Shareholders had expressed significant criticism of Blume taking on the position of CEO at both Porsche and the parent company, arguing that it represented an excessive workload and a potential source of conflicts of interest. Hendrik Schmidt from the asset management company DWS critically described Blume’s role as that of a “part-time CEO”. Blume had previously argued that the fact that he served as CEO of both companies was actually an advantage.
Blume’s Tenure at Porsche
After a successful run at Porsche, Blume was brought in to head Volkswagen. He took over Porsche in 2015, which was already the company’s most successful year. Under his leadership, Porsche was able to more than double its after-tax profits. In September 2022, Porsche raised almost 9.4 billion euros in its initial public offering (IPO).
Challenges in the German Automotive Industry
The German automotive industry has struggled in recent years as Chinese competitors edge them out in the electric vehicle (EV) market. Volkswagen is experiencing a severe sales and cost crisis, which, according to company management, is necessitating plant closures and layoffs. The announcement of Blume’s resignation comes at a time of great unrest for the German automotive industry.
