Published: Sat, April 14, 2018
Finance | By Loren Pratt

Dr. Herbert Diess appointed as new Volkswagen CEO

Dr. Herbert Diess appointed as new Volkswagen CEO

Despite the high costs in reputation and fines, the company under Mueller's two-year stewardship achieved record sales of 10.74 million vehicles in 2017 and made 11.6 billion euros ($14.3 billion) in profit.

VW administrator Hans Dieter Poetsch said in an announcement that Mr. Mueller had done "extraordinary work" for the organization. Mueller had taken on the job days after the "Dieselgate" scandal broke in September 2015.

The world's largest automaker announced Thursday that Diess, 59, had been chosen to replace outgoing boss Matthias Mueller in a surprise leadership shift.

Diess is not only to head the management board, the top executive body at German companies that reports to the supervisory board, or board of directors; he is also to be in charge of vehicle development and research, as well as vehicle-related information technology.

VW's goal is "to safeguard its position among the leaders of the worldwide automotive industry with innovativeness and profitability", said chairman of the supervisory board, Hans Dieter Poetsch in the statement. Also, new brand groups - Volume, Premium and Super Premium, will be introduced.

The plans were announced after Volkswagen board of directors ousted Matthias Mueller as CEO and discussed ways to overhaul the company, which spans motorbikes, buses, trucks and passenger auto brands including Ducati, Bentley, Porsche, Audi, Scania and Skoda.

"Herbert Diess is the right manager to do that".

CEO Matthias Mueller will resign his post and will be succeeded by Herbert Diess, who had been serving as CEO of the VW brand and has gained a reputation for cost-cutting at the sprawling company.

The carmaker said it will rearrange its 12 marks by making six new vehicle divisions and an uncommon arm dedicated to China, its biggest market.

"The group has fundamentally realigned and repositioned itself for it 2025 strategy". Analyst Max Warburton at Sanford C. Bernstein said the Kilian appointment had the appearance of concession to powerful employee representatives in return for agreeing to naming investor-friendly cost-cutter Diess as CEO.

And the chief executive of Porsche, Oliver Blume, will join the main VW board. Prior to this, the company admitted that it had used devices to the skew results on United States emission tests.

Diess moved over from BMW in 2015 shortly before the Dieselgate scandal broke.

"We believe we can not control and manage this century, but our group activities will be co-ordinated and our political relationships will be well maintained", said Diess, when asked how the company plans to stay ahead of a constantly evolving vehicle industry.

Like this: