The Volkswagen Group has ousted Marcus Duesmann as CEO of Audi, as the brand falls short of its main rivals, Mercedes and BMW, on innovation. Duesmann will be replaced by an insider, Gernot Döllner, who takes over at the helm of the German luxury brand as of the 1^st of September.

Duesmanns replacement doesn’t come as a complete surprise, as CEO of the Volkswagen Group Oliver Blume pointed at several pain points for the brand in the wake of the presentation of the group’s road map.

Blume stated that the potential of Audi hasn’t been fully realized in recent years, that the performance in China (Q1 2023: -16%) was underwhelming, and that software glitches hampered exciting product launches in the EV category.

A severe and lasting headache

According to initial plans, Audi was set to market its rival for the Mercedes EQE and BMW i5, the A6 e-tron, this year. The unreliable software architecture put that plan in the fridge. If all goes well, the car will arrive in 2024.

Moreover, the software revolution at the Volkswagen Group, centered in the CARIAD branch, is a joint project by Audi. It has become a severe and lasting headache for the company, postponing the zero-emission Porsche e-Macan.

Blume, who has been reigning over the German car giant for less than a year, wants to reap more profits and benefits from its luxury marque, which holds the strongest potential after Porsche (among volume brands). The “slow progress on innovation” and a product line-up “lagging behind its own capabilities” could all but have led to the dismissal of Duesmann.

From Panamera to group strategy

The official version goes that Döllner will build upon the strong legacy that Duesmann left behind, who moved into the top seat amidst the Corona peak and had to navigate the brand through the pitfalls of supply chain problems.

The newly appointed CEO served under Blume at Porsche, overseeing the Panamera series. But in his previous role, he was responsible for the Volkswagen Group’s Product and Group Strategy. “I look forward to shaping the company’s future together with the entire team at Audi,” he replied.

That future relies on strong electrification of the RS badge, serving as a cash cow for the brand while finding solutions for the ill-fated software hiccups and meeting the increased profit margin targets of 13 percent (up from today’s 11 percent) for the entire Audi group, which includes Lamborghini, Bentley, and Ducati.