Can CEO Herbert Diess reinvent Volkswagen with EVs and software?

Decision-Making

Herbert Diess, CEO of Volkswagen, navigates a complex decision-making framework shaped by European corporate governance. Unlike American companies where CEOs often have significant autonomy, Volkswagen's structure involves a supervisory board with union representation, requiring consensus and alignment for major decisions 1. Diess explains that this framework, while complex, allows for strategic investments in electric vehicles and software, positioning Volkswagen ahead of some competitors 1.

We have taken the decision to go for an electric-only platform five years ago. Some of our peers are coming to that conclusion now.

--- Herbert Diess

Volkswagen's brand structure, a conglomerate of independent brands like Audi and Porsche, further complicates decision-making but also offers economies of scale through shared technology and platforms 2.

   

Strategic Partnerships

Volkswagen's strategic partnerships, particularly with Argo AI, are pivotal in its pursuit of autonomous vehicle technology. Herbert Diess describes Argo AI as a key supplier, with Volkswagen holding a significant equity stake, allowing for close collaboration in developing self-driving systems 3. This partnership focuses on both robotaxis and private autonomous vehicles, reflecting a dual strategy in autonomous mobility 3.

Our aim is to be able to drive a car as Volkswagen. And we have two areas. One is where we are pushing with Argo in this area of robotaxis.

--- Herbert Diess

Additionally, Diess emphasizes the importance of software in the future of automotive engineering, with Volkswagen's software division, Cariad, playing a crucial role in integrating software across its vehicle platforms 4.