VW Confirms Diess as CEO, Reveals New Business Structure

Volkswagen AG confirms media reports that Herbert Diess, who heads the company’s VW brand, also has been appointed to replace group CEO and management board Chairman Matthias Mueller.

Diess also will oversee group vehicle IT/connectivity and development and research activities. VW credits Mueller with successfully navigating the company through its worst challenge ever, the diesel emission cheating scandal that began less than two weeks before he took over as CEO in September 2015.

But analysts say Mueller also failed to fully restructure the group’s 12 car, truck and motorcycle brands, a critical aspect of the company’s Strategy 2025 initiative to streamline its operations.

Under the structural moves announced today, VW will assign each of its 12 car brands into one of three categories: value, premium and super-premium. The company also reorganizing into six business units and preparing its commercial truck unit to be spun off as a publicly listed company. The company’s supervisory board plans to provide further details tomorrow.

As reported earlier, VW has named works council executive Gunnar Kilian to take over as head of human resources, replacing Karlheinz Blessing. Purchasing chief Francisco Garcia Sanz is leaving the company.

Under the new structure, Rupert Stadler, who heads the group’s Audi brand, will add group sales and take charge of the new premium-brand group. Similarly, Porsche CEO Oliver Blume will lead group production and head the new super-premium division.