Volkswagen Ousts CEO Herbert Diess

Volkswagen AG abruptly ousted Herbert Diess, its chief executive officer and architect of the auto industry's biggest electrification effort, after repeated clashes with labor unions chipped away at his support with key stakeholders.

Porsche boss Oliver Blume will succeed Diess within weeks, ending a four-year tenure in which his hard-nosed leadership style caused constant friction and undermined his effectiveness.

Missteps on key projects including delays at VW's software unit also contributed to the shake-up, people familiar with the matter said.VW's board is betting Blume will be a more collaborative and stable leader, said the people, who asked not to be identified discussing private deliberations.