Oliver Blume’s impending departure from the helm of Porsche, scheduled for the new year, signals a moment of introspection within the Volkswagen Group and underscores growing anxieties about the company’s financial trajectory. Speaking to “Die Zeit”, Blume expressed considerable personal sentiment regarding the relinquishing of his position, acknowledging a deep connection to the iconic sports car brand and its parent conglomerate.
Beyond the personal aspect, Blume’s decision highlights a strategic shift driven by escalating economic pressures. He explicitly stated the necessity of concentrated leadership in a climate of pervasive crises, citing the vital need for a singular focus to navigate challenging market conditions. The core of the issue, according to Blume, is a demonstrable underperformance – “the group is, ultimately, earning too little”. He characterized the era of consistent, expansive prosperity as over, a stark assessment applicable not only to Volkswagen but to the German economy as a whole.
A significant contributor to this downturn, Blume revealed, is the precipitous decline in the automotive sector in East Asia. He emphasized that profits generated from China had previously offset structural difficulties within the group, a dynamic that is now unsustainable. This dependence on the Chinese market has left the Volkswagen Group vulnerable to shifts in regional economic performance and evolving geopolitical dynamics.
The contentious debate surrounding the European Union’s planned ban on internal combustion engines after 2035 also features prominently in Blume’s commentary. He advocates for a more pragmatic approach, cautioning against an overly ideologically driven implementation of environmental regulations. Volkswagen, he argues, needs the flexibility to adapt to the pace of electric vehicle adoption, which is currently lagging behind projected timelines. While acknowledging the imperative of transitioning away from combustion engines, Blume stressed that easing regulations should not incentivize complacency and continued reliance on older technologies.
Looking to the medium term, Blume remains optimistic about the rising appeal of electric vehicles for consumers, predicting a future where they will become more cost-competitive with traditional gasoline-powered and hybrid models. He suggests a redirection of state subsidies, proposing a move away from diesel subsidies and towards bolstering the electric vehicle sector. This reallocation, he believes, would provide much-needed financial impetus for the transition to electric mobility. The move implicitly calls on the German government to re-evaluate its automotive policy and prioritize long-term sustainability over short-term incentives for legacy technologies.