Herbert Diess and Volkswagen's Electric Vision

The Rise of Herbert Diess at Volkswagen

Herbert Diess, a former CEO of Volkswagen, stands out in the automotive industry for his admiration of Tesla and his push for change within Volkswagen. His journey at Volkswagen began after leaving BMW in 2015, and he became the CEO of the Volkswagen Group in 2018. Diess was not a founder with a majority share, which meant he needed broad executive and board support for major decisions.

Diess's Advocacy for Electric and Autonomous Vehicles

Diess recognized early on that electric and autonomous vehicles were the future. He was vocal about Volkswagen's need to catch up in these areas, often publicly praising Tesla's lead in the market. This approach was not common among executives of legacy car makers, who typically downplayed the situation.

The Challenge of Shifting Volkswagen's Focus

Diess faced significant internal resistance when he proposed a massive investment in electric and autonomous vehicle (EV and AV) development. He suggested an 84 billion euro investment, a bold move especially during the pandemic's onset when Volkswagen's stock was suffering. This proposal was met with skepticism from other executives and board members, many of whom were more focused on immediate financial and production issues.

The Internal Struggle and Diess's Ouster

Diess's push for a radical EV shift within Volkswagen led to tensions with other executives and board members. His cost-cutting measures, necessary to fund the EV and AV investment, threatened job cuts, causing friction with labor leaders on the board. A leak of confidential information and Diess's subsequent accusations against other leaders exacerbated the situation, leading to discussions about replacing him.

The Demotion of Herbert Diess

In June 2020, Diess was stripped of his role as CEO of Volkswagen, though he remained CEO of the overall Volkswagen Group. This position, however, was seen as more ceremonial, with limited influence over the company's strategic direction.

Diess's Continued Advocacy for EVs and AVs

Despite his demotion, Diess continued to be vocal about the importance of EVs and AVs. He praised Tesla's achievements and maintained that the most valuable company in the world in the future would be a mobility company, possibly Tesla, Apple, or Volkswagen.

Volkswagen's Current Position and Future

While Volkswagen has recovered from its pandemic lows and is making strides in the EV industry, Diess's vision of challenging Tesla and leading the global market in electric and autonomous vehicles remains unfulfilled. The bureaucratic nature and corporate politics within Volkswagen have been significant hurdles.

Conclusion: A Tale of Vision and Resistance in Corporate Culture

Herbert Diess's story at Volkswagen is a compelling example of a visionary leader facing resistance in a traditional corporate environment. His push for a radical shift towards EVs and AVs highlights the challenges of implementing major changes in large, established companies.