Volkswagen in the storm: flower fights against crisis and investor allegations!

Volkswagen in the storm: flower fights against crisis and investor allegations!

Wolfsburg, Deutschland - Volkswagen is a symbol of a crisis in the automotive industry in the face of growing pressure and internal challenges. CEO Oliver Blume, who has recently headed both the Volkswagen Group and the subsidiary Porsche, is faced with sharp criticism from investors and shareholders. In an interview in the 13th floor of the VW high-rise in Wolfsburg, Blume expressed that he considered everyone to be replaced-including himself. Behind him, the logo of the "Volkswagen Group" shines on the wall and a glass of mineral water with the lettering "GTI" is his companion.

The general meeting on May 16, 2025 brought up the concerns about Blume's double role. Critics such as Janne Werning from Union Investment require clarification of the governance structures, while Hendrik Schmidt from DWS described the CEO as "part-time CEO" and denounced the potential conflicts of its position as problematic. Christian Strenger sees the double role as conflict -contained and harmful to the company and society.

growth despite challenges

In the middle of these difficulties, flower is dissatisfied with the development of the Volkswagen share, which has dropped by 20 % last year. He is particularly concerned about the result of the 2024 financial year. Nevertheless, Volkswagen is planning growth in 2025, supported by a number of austerity programs and an announced job cuts of over 40,000 jobs throughout the group. Blume defends his double role and points out that the Supervisory Board makes the decisions. Chairman of the Supervisory Board Hans Dieter Pötsch believes that the double role can bring advantages for both brands.

The challenges for Volkswagen are reinforced by external factors. Customs President Donald Trump and the constant uncertainty in the US business are additional risks. This was done in a context in which the majority relationships at Volkswagen continue to exist with around 90 % of the voting rights that are controlled by main shareholders. Preferable shareholders only have question and speaking rights, but cannot vote. The return to a purely virtual shareholder meeting after a presence meeting two years ago was considered cost -saving, but also critically.

a year "accelerate" strategy

To meet the challenges, Volkswagen implemented the "Accelerate" strategy last year, which is focused on strengthening the economy and acceleration of the company's transformation. One central goal is to reduce overhead costs, which are significantly below the 2019 level. In 2021, sales increased to 76.1 billion euros, an increase of 7 % compared to the previous year. Despite a decline in deliveries by 8 % to 4.9 million units, the operational result was able to increase to 2.5 billion euros, which enables a solid return of 3.3 %.

A special focus is on electromobility and the expansion of production capacities for electric vehicles. Volkswagen was planning to invest 18 billion euros in electromobility, hybridization and digitization by 2026. The company made significant progress with over 369,000 electric vehicles delivered in 2021 and the introduction of new models such as ID.4 and ID.5. The start of the pre -sale of the ID. Buzz in May 2022 and the planned expansion of production capacities in various works in the USA and Europe underline these ambitions.