Volkswagen: the surprise departure of the boss causes the title to slip by 3% in Frankfurt

Volkswagen: the surprise departure of the boss causes the title to slip by 3% in Frankfurt

A decline of nearly 3% for Volkswagen on the Frankfurt Stock Exchange on Monday. The market does not seem to appreciate the surprise departure of the boss of the automotive giant Herbert Diess, announced Friday evening. Volkswagen stock has lost almost a third of its value since January.

At 07:05 GMT, the title fell 2.80% to 130.40 euros, being the red lantern of a Dax down 0.30%. The fiery boss will leave his post at the end of August after four eventful years at the head of VW, engaged in a profound strategic change towards electric and digital.

From a common agreement

This departure was decided “by mutual agreement” at a meeting of Volkswagen’s supervisory board, according to a press release published Friday after the stock market.

Despite strong earnings and cash flow, investors seem to doubt that VW can successfully lead its shift to electric and new connected mobility services. Herbert Diess was in fact in the hot seat for months within the giant with twelve brands in the grip of recurring tensions with the powerful staff representatives and the other figures of the executive of the group engaged in a profound strategic shift.

Porsche soon on the stock market?

The change also comes as Volkswagen is planning to IPO Porsche, its most prized brand, to raise new funds for electrification and massive digital investments.

It is precisely the current chairman of the management board of Porsche, Oliver Blume, who will take the reins of the manufacturer from September 1, replacing Mr. Diess.

(With AFP)

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