Volkswagen to replace CEO Matthias Mueller with VW brand chief Herbert Diess

VW could make change at CEO by end of week as part of management reshuffle

VW could make change at CEO by end of week as part of management reshuffle

Volkswagen said that Mueller had "showed his general willingness to contribute to the changes".

In a statement, the automaker confirmed it was exploring options to reshuffle its management that "could also include a change in the position of the chairman of the Board of Management", which is the German term for CEO.

Business newspaper Handelsblatt reported that Herbert Diess, head of the VW brand - one of the group's 12 makes of cars, trucks and motorbikes - was slated to take Mueller's place.

Europe's largest automotive group is poised to replace group chief executive Matthias Mueller this week with Diess, a cost-cutter hired in 2015 from BMW as it seeks fresh impetus for its recovery from an emissions scandal.

In tapping the 59-year-old Diess for the top job, Volkswagen would elevate a senior executive from its own ranks, while handing the reins to someone who was not at the automaker when the diesel cheating began.

The supervisory board will meet Friday to sign off on the management changes, the people said.

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Despite facing billions in fines, vehicle refits and lawsuits relating to its "dieselgate" scandal, Volkswagen's operating results have been robust, with sales and profit hitting record highs previous year.

Mueller's likely departure comes two days after Deutsche Bank DBKGn.DE , another pillar of corporate Germany, dismissed its chief executive, John Cryan, in pursuit of a more rapid turnaround following years of losses.

VW said earlier Tuesday that it was considering a change in the CEO job.

FILE - In this June 1, 2017 file photo Matthias Mueller, CEO of the Volkswagen company, attends a contract signing ceremony as part of a meeting of German Chancellor Angela Merkel and China's Premier Li Keqiang at the chancellery in Berlin. A veteran of the company, he had previously served as head of Porsche.

The news emerged at the same time as speculation surrounding the company's executive leadership, with Volkswagen admitting that it's considering changes at the top in a short statement released on Tuesday.

Two months ago, sources close to Volkswagen management told Reuters that Mueller was growing frustrated with a lack of support for his reform efforts and by the company's inability to draw a line under its emissions scandal. The company declined to comment further.

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