Published: Fri, April 13, 2018
Business | By Kate Woods

Herbert Diess Joins Volkswagen As New Group CEO

Herbert Diess Joins Volkswagen As New Group CEO

Another business area will be dedicated to China, while another will be be dedicated to its Truck & Bus division.

This post will replace the Hg Diss, who was Chairman of the Volkswagen brand.

Herbert Diess Joins Volkswagen As New Group CEO
Herbert Diess Joins Volkswagen As New Group CEO

"Bringing Herbert Diess' CEO nomination forward is the next step in transforming VW into a more modern and effective company", Evercore ISI analyst Arndt Ellinghorst said in a note. Earlier on Thursday, sources had told Reuters that VW would reorganize its brands into these groups.

Even with the diesel emission burden to bear and faced with various accusations in the matter from all sides, Müller successfully managed to lead the VW boat through rough waters. Rupert Stadler, who runs the Audi luxury brand and who has repeatedly been under fire over the unit's role in the diesel crisis, will take on responsibility for group sales. The unit, which shares little or no overlap with the manufacturer's other divisions, will change its legal structure to prepare its access to capital markets, VW said in a separate statement.

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Osterloh's comments come after repeated clashes over Diess's drive to cut costs and improve profits at the carmaker's core VW brand, where Diess was handed the reins only three months before the Dieselgate scandal erupted. Dieselgate has so far cost VW more than ß25-billion (R370-billion) in buy-backs, fines and compensation, and it remains mired in legal woes at home and overseas. Bernd Osterloh, the company's powerful labor leader, balked at negotiating with him during tough contract talks in 2016, but Diess prevailed with a landmark deal that paved the way to cutting as many as 30,000 jobs and saving 3.7 billion euros ($4.6 billion).

Sanford Bernstein analyst Max Warburton said Diess' track record of cost-cutting points to a more efficient VW under his leadership. "It's a sign of real change at VW".

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"Herbert Diess is the right manager to do that", Poetsch said, praising "the speed and rigour with which he can implement radical transformation processes". A decision on a truck IPO is still "open", he said. Apart from this, Oliver Blume, Porsche CEO will be joined to the group Board of Management.

Gunnar Kilian who has served as Secretary-General of the Volkswagen Group Works Council until now has been appointed as the new member of the Group Board of Management for Human Resources. That spurred his move to Volkswagen. The news comes as the company carries out a major overhaul of its management infrastructure.

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