Leading both Porsche and the Volkswagen Group, the double life of Oliver Blume
Oliver Blume, the new boss of the Volkswagen group, would have explained that he did not really want this position. And in view of the monumental tasks that await it, one can understand it. Herbert Diess is gone, leaving behind the first chapter of the Volkswagen Group’s electric transition. It is he who really shifts the German giant from the era of the TDI to that of electric motors and technologies. But not without hitches: a Golf 8 more criticized than its predecessor, major software development problems, and more than chaotic beginnings for an ID.3 which failed to form a « German » image like the rest of the historical range. Today, Blume takes over, but it was on one condition.
Read also: Software problems: Volkswagen, Audi and Porsche electrics pending
Managing Porsche and the Volkswagen group, an impossible challenge?
Olivier Blume’s weeks are now six days, split half and half between Stuttgart and Wolfsburg. Three days in the lair of Porsche, and the other three to manage the affairs of a giant who has to deal with the boss of the staff and the powerful unions. But in the opinion of our German colleagues, Oliver Blume is less harsh with his teams and would bet much more on people than his predecessor, who was probably criticized for having sympathized too much with the enemy Tesla, citing the American company as an example. Herbert Diess did not hesitate to praise the methods of his counterpart Elon Musk…
If Oliver Blume is today at the head of the Volkswagen group, it’s only because he set his conditions: to remain the CEO of Porsche. « In terms of strategic vision, Herbert Diess did everything right. The only problem was the implementation… » explains the VW group. For Oliver Blume, it is now a question of quickly fixing the software problems (remember that Porsche is also working on a partnership with Apple) while restoring the image of Volkswagen, especially in the face of the rise of formidable rivals such as the Koreans of Hyundai and Kia.
Porsche in the electric age
The current decade is a turning point for many automotive groups, but especially for VW. 2022 is also a very special year since Porsche is preparing to go public, with an initial capitalization estimated at nearly 90 billion euros. Let’s not forget motor racing either, an essential element of Porsche and the group’s activity, all the more so with the arrival of Audi in Formula 1.
However, the biggest challenge ahead remains the electric transformation of Porsche. The Macan will be the first model in the catalog to be converted, before the 718 couple make the transition in 2025. For the 911, it will be necessary to wait for the Type 998 by the end of the decade. But by then, the Stuttgart icon will have already gone through hybridization. And Oliver Blume will be expected at the turn, because Porsche cannot afford to lose in volume (more than 300,000 sales last year) or in profitability (margin at around 15%). But the German brand cannot, either, continue to offer thermal power at all if the Volkswagen group wishes to meet CO2 objectives. It will therefore be necessary to attract more than 300,000 people with Macans, Caymans and electric 911s, and with high profitability. And that’s probably no small feat… for the boss of the VW group!
