Partners are key to China, software issues, says VW's Blume

10 May 2023 - 11:29 By Monica Raymunt
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Oliver Blume, at the helm of VW since September, while retaining the top job at Porsche, has endured a number of highs and lows since taking over from Herbert Diess, with Porsche’s blockbuster initial public offering unable to paper over the company’s sales slide in China.
Oliver Blume, at the helm of VW since September, while retaining the top job at Porsche, has endured a number of highs and lows since taking over from Herbert Diess, with Porsche’s blockbuster initial public offering unable to paper over the company’s sales slide in China. 
Image: Sascha Schuermann/Getty Images

Volkswagen will amp up partnerships and the use of external expertise to tackle the challenges of keeping up in China and rectifying software struggles that have pushed Europe’s biggest carmaker off course.  

VW is “broadening our approach to partnerships” on software and teaming up with local players in China, CEO Oliver Blume said during the company’s AGM Wednesday. The company is also planning to turn successful models like the Golf hatchback into attractive cars for the electric age. 

“Our icons must — and will — be part of the e-mobility of the future,” Blume said. “We must, we will and we can position these models where they belong in terms of brand image.”

VW lost its sales lead in China during the first quarter and this week swapped out the leadership of its software unit after severe delays. Blume, at the helm of VW since September, while retaining the top job at Porsche, has endured a number of highs and lows since taking over from Herbert Diess, with Porsche’s blockbuster initial public offering unable to paper over the company’s sales slide in China. 

In VW’s biggest market, the company is working with Horizon Robotics as part of a €2.3bn (roughly R47bn) deal to set up a joint venture and get ahead on autonomous-driving technology. On Tuesday, Porsche said it will collaborate with Mobileye Global on driver-assistance technology. The deal may later involve other VW brands, such as Audi, according to RBC Capital Markets. 

During his speech, Blume said his dual roles at VW and Porsche, by now Europe’s biggest carmaker by value, “works well and is paying off”, as investors continue to point to a conflict of interest. 

More stories like this are available on bloomberg.com



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