By Kim Richters

 

Shares in Volkswagen AG tumbled on Monday after the German car maker's decision to replace current Chief Executive Officer Herbert Diess in the midst of the company's shift toward electric vehicles.

The auto maker said Friday that Mr. Diess would step down effective Sept. 1 and be succeeded by Oliver Blume, who is also CEO of Volkswagen's sports-car maker Porsche AG. The departing chief executive had repeatedly clashed with unions and the move comes after renewed internal strife over the slow progress developing core software for the company's new generation of electric vehicles.

Analysts at Stifel said the top-job replacement comes at a bad time as the car maker is preparing the potential stock-market listing of Porsche AG and the fact that Mr. Blume looks set to lead Volkswagen group while also remaining head of the sports-car brand is negative.

"However, in light if the ongoing leadership issues over the past two years and a depressed valuation, we believe this is an opportunity," they say in a research note.

At 0725 GMT, Volkswagen's preference shares were trading 3.2% lower at EUR130.06.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

July 25, 2022 03:51 ET (07:51 GMT)

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