Volkswagen's Leadership Shift: Can Susanne Wiegand Revive the Company's Talent Appeal and Drive Growth?

The automotive industry is undergoing a seismic shift toward electric vehicles (EVs) and digital innovation, but Volkswagen's struggles to attract top talent threaten its ability to compete. A recent Trendence survey ranked VW 18th in employer attractiveness among young professionals in Germany, far behind peers like BMW (3rd) and Porsche (1st). With Susanne Wiegand now at the helm as CEO, investors are watching closely to see if she can transform the company's culture and retain the skilled workforce needed to execute its $55 billion EV push by 2027. Here's why her leadership could be pivotal—and what it means for shareholders.

The Talent Gap: Why VW Lags Behind

The Trendence survey highlights a stark reality: Volkswagen's employer brand is failing to resonate with younger generations. Among engineering graduates, VW's appeal dropped to 11% in 2023 from 17% in 2019, while Tesla—a once-sizzling rival—lost 6 percentage points in the same category. Key issues include perceptions of poor work-life balance (-9%) and unfriendly environments (-6%), according to respondents. These findings mirror broader industry trends: 53% of employees prioritize wellbeing, yet only 25% feel their employer supports it adequately. For a company racing to retool its workforce for EVs and software development, these gaps are existential.

Wiegand's Playbook: Culture as a Competitive Advantage

Wiegand, who took over in April 2024, brings a fresh perspective. A former head of human resources and labor relations, she has already emphasized “trust, transparency, and agility” as pillars of her leadership. Her strategy aligns with the data: companies prioritizing leadership engagement see a 25% productivity boost and 40% higher employee satisfaction, while those embedding their Employee Value Proposition (EVP) into culture report a 36% rise in satisfaction and 25% better engagement.

Wiegand's early moves include:1. Rebuilding Trust: She has publicly committed to addressing workforce concerns highlighted in VW's internal “Opinion Barometer,” which recorded an all-time high mood index of 82.4 in 2023 but still faces criticism over flexibility and work-life balance.2. Modernizing EVP: Shifting from rigid hierarchies to agile teams, and emphasizing upskilling programs. VW's EV and software divisions, such as its Cariad unit, now offer cross-functional roles and mentorship opportunities to attract tech talent.3. Employee Advocacy: Leveraging employees as brand ambassadors, a tactic that boosted consumer trust by 60% in similar companies.

The Stakes: Talent Retention and EV Success

Volkswagen's future hinges on retaining engineers, software developers, and data scientists—the very workers fleeing to startups or tech giants for better flexibility and purpose-driven work. A 1% improvement in retention could save VW hundreds of millions annually in recruitment and training costs. More critically, 41% of employees cite lack of salary growth as a retention concern, while stagnant raises (3.6% in 2024 vs. 6.2% in 2022) risk further disengagement. Wiegand's ability to align compensation with performance—and visibly address equity gaps—will test her resolve.

Investment Implications: A Long-Term Play with Catalysts

Volkswagen's stock has underperformed peers over the past year, down 12% compared to BMW's 5% rise and Porsche's 18% jump. However, a turnaround in talent metrics could catalyze a rebound. Key catalysts to watch:- Retention Rates: A 41% retention boost (as seen in companies with strong internal EVP launches) would signal progress.- Culture Metrics: Improved scores in work-life balance and trust, tracked in VW's biannual employee surveys.- Hiring Speed: Reducing time-to-hire for critical EV roles by 27% (the industry average for data-driven strategies) would ease bottlenecks.

Risks and Realities

Wiegand faces hurdles. Legacy systems and union dynamics complicate cultural shifts, while Tesla's relentless innovation and BMW/Porsche's premium brand equity loom large. A misstep in wage negotiations or a high-profile talent exodus could undermine confidence.

Conclusion: A Transformative Opportunity

Susanne Wiegand's leadership offers a credible path to revitalizing Volkswagen's employer brand—if she can close the gaps in trust, flexibility, and career growth. For investors, the company's EV ambitions remain compelling, but execution hinges on talent retention. A sustained improvement in Trendence rankings and internal morale could unlock a 15-20% upside in VW's stock over the next 18 months. The verdict will come not just in earnings reports, but in the eyes of the next generation of engineers choosing where to build their careers.