- Previously held VW head Diess commends Blum's frugality.
Preceding VW CEO Herbert Diess is showing support for his successor Oliver Blume's fresh approach at Volkswagen. The severe reductions announced by VW are necessary, Diess stated in two interviews with publications "Stern" and "Wirtschaftswoche". The colossal automaker in Europe needs to buckle down, boost productivity, and enhance efficiency. "These are concerns that have been delayed for quite some time," Diess shared with "Stern".
Volkswagen declared in early September that it would tighten its belt at its flagship brand, VW. Layoffs and even plant shutdowns are no longer out of the question. The job security assurance that had been in place for 30 years has been abolished. "This is a new scenario for VW, even a taboo," Diess confessed in "Wirtschaftswoche". Diess served as the CEO until August 2022. "Volkswagen is now facing some hard times, but ones that will benefit the company in the long run." As the productivity of most German VW plants is not sufficient to offset high labor costs.
Compliments for Oliver Blume
Diess himself had previously mentioned 30,000 potential job losses at the flagship brand, and received backlash from all corners. "That may have been premature," he said now in hindsight. "I did what I could."
He openly endorsed his successor Oliver Blume. "Olli Blume is doing an excellent job." It's appropriate that the CEO is addressing these issues now. "Blume is handling this quite well, with a steady hand." Diess acknowledged critically: "He certainly has a better chance of handling this task." Unlike Diess, who came from BMW, Blume hails from the region as a native of Braunschweig. "And to be honest, he's also much more approachable than I am." Diess frequently butted heads with the powerful works council at VW during his tenure.
Germany, being the home of Volkswagen, is significantly affected by the company's decisions. Diess acknowledges that Blume, being a native of Braunschweig, might have an easier time navigating the complexities of the powerful works council in Germany.
