Volkswagen Shares Drop After Board Replaces CEO Diess
July 25 2022 - 4:06AM
Dow Jones News
By Kim Richters
Shares in Volkswagen AG tumbled on Monday after the German car
maker's decision to replace current Chief Executive Officer Herbert
Diess in the midst of the company's shift toward electric
vehicles.
The auto maker said Friday that Mr. Diess would step down
effective Sept. 1 and be succeeded by Oliver Blume, who is also CEO
of Volkswagen's sports-car maker Porsche AG. The departing chief
executive had repeatedly clashed with unions and the move comes
after renewed internal strife over the slow progress developing
core software for the company's new generation of electric
vehicles.
Analysts at Stifel said the top-job replacement comes at a bad
time as the car maker is preparing the potential stock-market
listing of Porsche AG and the fact that Mr. Blume looks set to lead
Volkswagen group while also remaining head of the sports-car brand
is negative.
"However, in light if the ongoing leadership issues over the
past two years and a depressed valuation, we believe this is an
opportunity," they say in a research note.
At 0725 GMT, Volkswagen's preference shares were trading 3.2%
lower at EUR130.06.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
July 25, 2022 03:51 ET (07:51 GMT)
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