Volkswagen CEO Herbert Diess unexpectedly submitted his resignation on Friday. 

Diess, 63, informed the board of supervisors of his decision, saying he would step down on September 1.

Volkswagen AG confirmed the news Friday evening in a statement, saying there had been "mutual" agreement on Diess' departure. 

VW announced that Diess would be replaced by 54-year-old Porsche CEO Oliver Blume, who will serve as CEO of both Volkswagen and Porsche. It was also confirmed that Blume, who is currently putting the final touches on Porsche AG's planned IPO this fall, will receive support in day-to-day operations from VW CFO Arno Antlitz.

Supervisory Board Chairman Hans Dieter Pötsch thanked Diess for his service as CEO and for helping transform the company. 

Diess, previously a manager at BMW, took the reins at VW in April 2018. He pushed electrification at VW but ran into trouble with software development, among other things. 

He also often found himself at odds with the works council when it came to managing the company's budget.

js/wd (AFP, dpa, Reuters)