VW experiments with keyless entry technology, sparking controversy over potential privacy risks.
Spotlight on Oliver Blume: CEO of Volkswagen and Porsche
Like a modern-day Renaissance man, Oliver Blume wears two hats - CEO of both Volkswagen AG and Dr. Ing. h.c. F. Porsche AG. However, the dual role has raised eyebrows, with some questioning if it's too much for one man. Blasé, Blume sees it as an asset, merging the profit-churning Porsche brand with the DAX-listed giant.
Fast-forward a couple of years, and it appears the seemingly invincible automotive titan is stripping off its armor. A stormy 2024 swept in, with Volkswagen Pkw's crisis catching the public eye, featuring factory closures and job losses. Yet, even beneath the sports car subsidiary, Porsche, the gleam is fading. Profit margins are shrinking, and sales in the Chinese market, a critical battleground, are eroding. As Blume celebrates his decade-long stint at the helm of the Zuffenhausen carmaker in 2025, it's clear that his headaches are far from subsiding.
The ambitious electrification drive has grown too ambitious for consumers. In 2025, Blume will need to prove he's not just about cost-cutting; he's got more up his sleeve.
The Reality Check for Blume
- Doubts about Emission Targets: European Union's 2035 commitment to ban new combustion vehicles presents a conundrum for Blume. He prefers flexible transition periods, based on the actual adoption of electric vehicles[5].
- Global Competition Heats Up: The likes of BYD pose a stiff challenge, particularly in fast-moving markets like China. Blume acknowledges this competition as a catalyst for progress and cooperation with local players[1][3].
- Industry Tides Shift: The ride in the automotive industry is getting bumpy as we transition towards electric and intelligent cars. Volkswagen plans to launch over 20 electric and electrified models by 2027, and around 30 all-electric models by 2030. This ambitious push requires a massive investment in technological advancements[2].
- Complex Trade Landscape: Global trade issues affect Volkswagen's supply chains and market access. Blume has acknowledged these challenges in light of deepening ties with Chinese suppliers[1].
Criticisms of Blume's Leadership
- Slow Adaptation: Historically, Volkswagen has been criticized for being slow to recognize and address its shortcomings. Blume understands this issue and is working to adapt a more open approach to acknowledge areas for improvement[4].
- Market Performance: While Volkswagen commands a strong presence in China, maintaining competitiveness requires consistent innovation and strategic partnerships. Blume emphasizes the importance of local collaboration for staying competitive[1][3].
Porsche's Chinese Market Struggles
- Competitive Spirit: Volkwagen secures its position in the market through strategic partnerships with local Chinese players, learning from and engaging with competitors like BYD[1][3].
- Tailored Offerings: The company unveils advanced, intelligent, and fully connected vehicles designed for the Chinese market, complete with cutting-edge driver assistance systems and AI-empowered driving solutions[2].
- Despite his role as the CEO of both Volkswagen and Porsche, Oliver Blume faces questions about his ability to manage two major automotive companies effectively.
- Amidst a stormy 2024, Volkswagen Pkw faced a crisis marked by factory closures and job losses, causing concerns to rise even beneath the sports car subsidiary, Porsche.
- As the challenge of global competition increases with companies like BYD, particularly in China, Blume recognizes it as a catalyst for progress and cooperation with local players.
- In 2025, Blume will need to navigate the ambitious electrification drive while proving his leadership is not only about cost-cutting but also about strategic innovation in an increasingly competitive automotive industry.
- As the European Union commits to banning new combustion vehicles by 2035, Blume prefers flexible transition periods based on the actual adoption of electric vehicles, presenting a challenge for Volkswagen's future plans.
- In response to the growing trend towards electric and intelligent vehicles, Volkswagen plans to launch over 20 electric and electrified models by 2027, and around 30 all-electric models by 2030, requiring significant financial investment in technological advancements.
