Volkswagen AG has made a significant move to boost its premium brand Audi by replacing its CEO in an effort to compete in the electric car race and reverse a decline in sales in China. Gernot Döllner, an insider at VW, will take over leadership at Audi in September, succeeding Markus Duesmann. The decision comes after Oliver Blume, the current CEO of Volkswagen, highlighted Audi's underperformance and announced measures to improve the overall performance of the group.
Duesmann, who has been leading Audi since 2021, saw the brand's potential fall short during his tenure. The former BMW executive had initially led VW's software efforts, which faced setbacks and delays, causing tensions with Porsche over a joint vehicle platform with Audi. Furthermore, Audi's prestigious self-driving vehicle project was scrapped last year due to slow progress, adding to the pressure on Duesmann.
In an effort to reinvigorate Audi, the company has appointed Gernot Döllner as CEO. Döllner, a former Porsche executive, has a long-standing career at VW and currently heads the group's strategy. By leveraging his extensive experience and working closely with Blume, Döllner aims to accelerate Audi's growth and bring the brand back on track.
Volkswagen is striving to keep up with the demands of the electric car and digital transition, and Blume is particularly focused on execution and product delivery. VW has witnessed a decline in market share in China due to software glitches and the availability of more appealing electric vehicle models from competitors. Audi, as the company's biggest brand, has also struggled, with global deliveries slipping for three consecutive years. In 2020, Tesla surpassed Audi in deliveries, highlighting the need for Audi to enhance its electric offerings to remain competitive.
Duesmann's departure is part of a series of management changes initiated by Blume as he seeks to make his mark on the sprawling German carmaker. Blume aims to streamline operations and address challenges by revamping key positions and refocusing VW's software unit. By appointing new leaders and driving a sense of urgency, he aims to position Volkswagen for success in the fast-changing automotive landscape.