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

VW Group ousts CEO, names Diess as replacement, announces restructuring

VW Group ousts CEO, names Diess as replacement, announces restructuring

Two sources familiar with the matter said on Tuesday that Volkswagen's supervisory board was poised to replace Mueller, a 64-year-old company veteran, with Herbert Diess, the 59-year-old head of its core VW brand who joined from BMW in 2015 with a reputation for driving change.

The carmaker will prepare its truck and bus division for "capital market readiness" by making it a public limited company as a prelude to a potential listing, confirming a Reuters report from last month.

Mueller, who formerly headed Porsche, took over as CEO unexpectedly in September 2015 when Martin Winterkorn resigned over the company's scandal over cars rigged to cheat on emissions tests.

More news: Florida school shooter wants victims to have his inheritance

Dieselgate has cost VW more than 25 billion euros ($31 billion) in buybacks, fines and compensation, and the carmaker remains mired in legal woes at home and overseas. The company sold 10.74 million vehicles and made 11.6 billion euros ($14.3 billion) in profit.

Board Chairman Hans Dieter Poetsch said Muller had done "outstanding work" at a time when the company "faced the greatest challenge in its history". Volkswagen has set up a services company, Moia, and plants to turn out more battery-powered models.

Mueller will be replaced before the automaker's annual general meeting on May 3 and be replaced by brand chief Herbert Diess, Bild said. Its brands will be split into vehicle groups for Volume, Premium, and Super Premium nameplates. The company did not detail the fifth and sixth business divisions ahead of a news conference scheduled for 10:30 a.m. (0930 GMT) Friday.

More news: Apple To Mac Users: We Will End Support For 32-bit Apps

Diess said Mueller "laid the groundwork" for Volkswagen's transformation.

On Wednesday, four sources close to the company told Reuters the supervisory board would seek to bring works council executive Gunnar Kilian onto the company's management board to try to secure backing for Diess and his plans.

Oliver Blume, CEO of Porsche, joins the Group Board of Management, and takes on the responsibility for group production.

More news: Snow, ice pellets, freezing rain on tap for Almaguin this weekend

Volkswagen's efforts to reform have often been stifled by powerful labour unions who command half of the seats on the board of directors, and the German state of Lower Saxony, which controls a 20 percent voting stake.

Like this: