Volkswagen fell almost 3% on Monday on the Frankfurt Stock Exchange, the market did not appreciate the surprise departure of the head of the auto giant Herbert Diess announced on Friday night.
At 07:05 GMT, the stock was down 2.80% to €130.40, with the red lantern of a Dax down 0.30%. The fiery boss will step down at the end of August after four eventful years at the helm of VW, in the midst of a profound strategic shift towards electric and digital.
This exit was decided “by mutual agreement” at a meeting of Volkswagen’s board of directors, according to a press release published on Friday after the stock market.
A title that has lost almost a third of its value since January
Volkswagen shares have lost nearly a third of their value since January.
Despite strong earnings and cash flow, investors seem doubtful that VW can successfully lead its shift to new electric and connected mobility services.
Indeed, Herbert Diess was on the hot seat for months inside the 12-brand giant amid recurring tensions with powerful staff representatives and the group’s other executive figures immersed in profound strategic change.
The change also comes as Volkswagen is planning the IPO of Porsche, its most prized brand, to raise new funds for electrification and massive digital investments.
It is precisely the current president of the board of directors of Porsche, Oliver Blume, who will take the reins of the manufacturer from September 1, replacing Mr. Diess.
Source: BFM TV
