Crisis at Volkswagen: Is Oliver Blume losing support?

In practice, the power and influence of a VW boss are always linked to his relationship with the Porsche and Piëch families – without the support of the powerful owners, nothing can be achieved. As is well known, the situation in the German automotive industry, and at VW in particular, is not easy at the moment. With the decision to end Blume’s dual role in Zuffenhausen and Wolfsburg at the turn of the year, a radical change is imminent, and one might think that things will now be quiet until the new structures are in place.

However, at a time when Blume has stepped down as CEO of Porsche, officially at his own request, in order to concentrate on the Group, a recent report in the Handelsblatt newspaper is causing a stir because the timing of the statements made there is explosive. Blume’s support among the Porsche-Piëch family is said to be crumbling. “The family is appalled by the state of the entire Volkswagen Group,” a “close advisor to the family” is quoted as saying in the article. Regarding Blume’s work as VW boss, it states: “A lot has to change.”

Until now, Blume has enjoyed strong public support from the families, and he owes a great deal to his good relationship with the Porsche-Piëch clan. Speaking to Handelsblatt, another source independently confirmed that the mood has changed. Officially, however, the Porsches and Piëchs are standing by their top manager: spokespersons for the family and the VW Group have categorically rejected this information at the request of Handelsblatt, it is reported.

Blume’s electric car strategy at Porsche is viewed critically

The truth probably lies somewhere in between – Blume’s work is viewed critically, but he is not being openly criticised either. One thing is clear: Porsche has gone from being a former profit machine to a cause for concern, with returns recently standing at just 0.2 per cent. This is said to have cost the company the trust of the families. “In retrospect, the sports car manufacturer’s electric strategy is considered a mistake by the owner family,” it says.

The situation is also pressing at the group level. Blume is not blaming factors such as market performance in China or North America, as this is partly due to the political situation. However, the important ‘planning round’, in which the group’s top management decides each autumn on the utilisation of the plants for the next five years and thus on investments worth billions, could once again not be completed on time. An agreement in November is considered out of the question, but a decision is still considered possible in December – although this is not certain.

According to sources on the supervisory board, there is a lack of “reliable decision-making criteria,” which would be the fault of management. Another point: there is talk of “uncertainties regarding the SSP future platform.” This is the platform on which models such as the electric Golf from Wolfsburg are to be based towards the end of the decade. If the platform does not debut on time (as was the case with the PPE), this could have serious consequences for the Wolfsburg plant. Production of the combustion engine Golf is to be moved to Mexico, so that Wolfsburg is ready for the ID. Golf. And if this comes later, the main plant would be in a bad position.

In addition, according to another Handelsblatt report, the four large VW plants in Germany, including Wolfsburg, Emden, Zwickau and Hanover (VW Commercial Vehicles), are said to be “lagging behind their cost targets.” The current austerity measures of the board, which are intended to avoid plant closures, are apparently now viewed critically within the family, with the view that they have “not cut deep enough.”

There could be a deeper conflict behind this. Statements in the report suggest that the families see their billion-pound inheritance under threat and therefore view important future projects with their initially high investments critically. “They have an aversion to PowerCo, Cariad and Rivian. Anything that costs a lot of money and could reduce dividends is a thorn in the side of the family,” according to “supervisory board circles critical of the family.”

In 2026, Oliver Blume will only have one top job left, but it is likely to demand his full commitment.

handelsblatt.com (in German)