Volkswagen Boss Blume Plans to End Dual Role as Porsche CEO

Volkswagen is entering a turning point in leadership. Oliver Blume, who has been running both Volkswagen Group and Porsche since 2022, now plans to step back from his dual role. This move comes after months of debate about whether one person can guide two of the world’s most powerful carmakers at the same time. We can see why this matters. Volkswagen is pushing ahead with electric vehicles, new software systems, and global expansion. Porsche, on the other hand, is sharpening its focus on luxury growth and building its EV lineup. Both brands carry huge weight in the auto industry, and each needs dedicated leadership. Blume’s decision is more than a personal choice; it signals a shift in strategy for the future of German carmaking.

Background: Blume’s Dual Role

Blume became Porsche’s chief in 2015 and was later appointed as the head of Volkswagen Group in 2022. He’s managed both roles since Porsche’s spin-off listing in September 2022. The board originally framed this dual role as a temporary bridge, helping Volkswagen’s overhaul from emissions scandal to EV transformation, and guiding Porsche through its then-new market listing.

Why the Change?

We see growing pressure. Shareholders and analysts have flagged the dual role for months. They argue that one person cannot properly lead two big firms, especially now. At the start of 2025, Porsche’s sales dropped steeply, falling 42% in China during the first quarter, while U.S. tariffs further pressured its profits. Profit in the first half of 2025 tumbled more than 71% year-on-year to €718 million. Experts say these challenges highlight the need for dedicated focus at Porsche. Blume himself has admitted the dual role “was not designed to last forever,” though he had not set a timeline.

Implications for Volkswagen

This shift frees Blume to pour his full energy into Volkswagen. We can expect him to sharpen attention on EV strategy, software development (like Cariad), and global expansion, especially in markets like the U.S., China, and Europe. Talks are already in progress, with the supervisory board and the works council involved. This group also features influential figures like the Porsche and Piech families, who control Volkswagen’s voting rights via Porsche SE. The smooth transition could reassure investors of governance strength and strategic clarity.

Implications for Porsche

For Porsche, this means a standalone leader with full focus. The search for a successor is underway. Both internal and external names are being considered by the board, works council, and controlling families.VW hopes to announce a new CEO in autumn 2025, with implementation by early 2026. A dedicated CEO may better steer Porsche’s luxury EV push (like the Taycan and planned Macan EV). It may also help fix structural gaps and restore investor trust amid recent financial dips.

Industry and Market Reactions

Investors reacted positively to the news. Volkswagen’s and Porsche’s stock tickers reflected modest gains after the news broke. Analysts say the move signals stronger governance and could narrow valuation discounts tied to leadership uncertainty. Berlin’s business media, including Wirtschaftswoche and Reuters, covered the story extensively. Comparisons are being drawn to other automakers, highlighting how transparency and focused leadership are key amid the industry’s rapid shift to electrification.

Challenges Ahead

Still, challenges remain. Volkswagen must navigate EV competition, supply strains, and regulatory pressure, while restoring margins and completing its software overhaul. Porsche must maintain its premium image while ramping up EV output. Blume’s exit from one role doesn’t instantly solve long-term structural issues. Leadership transitions always carry risk; any misstep during the swap could disrupt strategy or hurt morale. Coordination between VW and Porsche remains critical, especially for shared technologies and joint platforms.

Conclusion

Volkswagen’s decision to have Oliver Blume step down from Porsche marks a strategic shift. It offers both VW and Porsche a chance to thrive under dedicated leadership. For Volkswagen, the move lays a path to a more focused direction. Porsche offers a brand-individual strategy and renewed investor trust. In a fast-changing auto world, this could be the reset both companies need. The coming months, through fall announcements and early-2026 leadership changes, will be decisive.

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