Volkswagen Shareholders Demand CEO Resign Dual Roles Over Governance Concerns

At Volkswagen's virtual annual general meeting, major shareholders criticized CEO Oliver Blume's dual role as head of both Volkswagen and Porsche, calling it a conflict of interest that harms the company's reputation and finances. Investors urged Blume to relinquish one of his positions, asserting that his divided focus and the board's lack of expertise in electrification and digitalization are hindering Volkswagen's progress amid challenging market conditions, including US tariffs and intense competition. Blume defended his dual role as beneficial for cost-cutting and strategic alignment but acknowledged it is not intended to be permanent. The controlling influence of the Porsche and Piech families via Porsche SE has also been questioned, with calls for greater board independence to improve governance. Volkswagen's shares have fallen nearly 25% over the past year, underperforming key indices, and shareholders link this decline partly to governance issues rather than just operational challenges. This shareholder activism highlights increasing pressure on Volkswagen to reform its governance and adapt more swiftly to industry transformations driven by electrification and digitalization.