After the departure of Herbert Diess, Oliver Blume (Porsche) takes the reins of the Volkswagen Group: here are the challenges he faces

Last Friday at the last minute,  Herbert Diess ceased to be the CEO of the Volkswagen Group . He is replaced by current  Porsche CEO Oliver Blume . That, at the same time, remains as CEO of Porsche.

Diess' aggressive strategies to electrify the group did not sit well with the unions. Added to this are the delays in the development of car software. All this led the Porsche and Piëch families, owners of the Volkswagen group, to do without Diess.

It is now up to Blume to continue the transformation of the Volkswagen Group. And these are some of the challenges you will face.

Its two main challenges will be the IPO of the Porsche brand and providing a solution to the prolonged problems of the group's software division, Cariad, as  Automotive News recalls. Porsche is the Volkswagen Group's most valuable asset, while the group's software problems are behind the delay of several models, such as the electric Porsche Macan.

Ensuring a successful IPO for Porsche. This is the first challenge that awaits you. This IPO could be the largest in European history for a car manufacturer, as it is expected to raise between 60,000 and  80,000 million euros . But at the same time, there are growing fears that recession risks, rising energy costs and geopolitical tensions could possibly drive Porsche's valuation down.

Continue electrification without putting the unions against . Volkswagen unions wield considerable influence, with employee representatives holding half the seats on the board.

Its leaders and the state of Lower Saxony are resisting drastic and hasty change that puts jobs at risk. And the electric car means fewer jobs. Making the Volkswagen Group the first maker of electric cars with the help of unions is going to be the toughest challenge of all.

Take advantage of all the possibilities offered by the software . Volkswagen's efforts to build its own software operation under its Cariad division have so far been a bad experience with product delays. Tesla is a leader in regularly rolling out over-the-air updates that add features and improve the performance of its cars.

And that seems to be the way to go. Taking advantage of the opportunities offered  by software, especially new forms of revenue,  such as  equipment via subscription , will be the industrial revolution.

Stay relevant in China . Volkswagen has lost share in its top market due to mismanagement of its chip supply and a lack of digital features in its cars, which Chinese drivers increasingly appreciate.

Tesla's new factory in Shanghai isn't the only thorn in the group's side, as products from local manufacturers are also gaining traction. Revenue from China is essential to fund the group's electric ambitions.

Do business with Tesla. While Volkswagen faltered during the microchip crisis and struggled to keep its production lines running, Tesla maintained steady growth during the period.

Tesla 's  aggressive expansion  (Shanghai, Berlin, Austin) makes  Volkswagen's Trinity project  , which includes a €2 billion German plant, paramount for the group if it is to maintain its position as the world's largest automaker.