Volkswagen puts Herbert Diess in the driving seat

Volkswagen CEO Shakeup? Dieselgate Still Roiling Upper Management Ranks At Volkswagen?

Volkswagen CEO Shakeup? Dieselgate Still Roiling Upper Management Ranks At Volkswagen?

Volkswagen Group has ousted CEO Matthias Müller and replaced him with Herbert Diess, previously CEO of the Volkswagen brand within the larger 12-brand corporation.

The management reshuffle could affect other senior VW executives, a source told Reuters on Wednesday.

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.

However, in May 2017 prosecutors in Stuttgart said they were investigating Mr Mueller over suspicions he may have known about the diesel cheating before it became public.

The restructuring means Diess also will take over a parent company that includes auto brands Porsche, Audi, Bentley, Bugatti and Lamborghini.

But Diess, a lanky, cool-headed Bavarian, never got ruffled and ultimately secured a landmark deal that paved the way to cut as many as 30,000 jobs and save 3.7 billion euros ($4.6 billion). Amid opposition from labour leaders, he failed to sell motorbike maker Ducati past year.

Budget Deficits And Debt Projections Look Much Worse Assuming "Current Policy"
The country's cumulative deficit will balloon to $11.7 trillion from 2018 to 2027, $1.6 trillion higher than previous estimates. In that case, "I would bet our debt will be around 101% of GDP by the end of 10 years", MacGuineas said.

Diess, a former BMW executive who joined VW two months before the emissions cheating came to light, pledged from the beginning to pursue new technology while reining in spending growth. After nine years there, he moved to Volkswagen in 2015 right before the infamous diesel emission scandal. "Unions and Lower Saxony together have the power to block his appointment".

Officially, the line from the company is simply that a change at the top of the company may be coming as part of a larger overhaul of management, but a number of unofficial sources (as quoted by Handelsblatt) have said Diess is likely to be appointed the new CEO soon.

Continuing, Reuters reports: "But the persistent tug of war between its controlling families, unions and other stakeholders have made it hard to drive through structural changes that investors have said are key to the company fulfilling its potential". The new structure, in which Diess plans to hold on to his leadership of the important VW brand, would comprise a mass market, premium, high-end sports cars and commercial vehicles unit. His contract is due to run until 2020.

VW brand chief Herbert Diess presented the I.D. Buzz Concept vehicle in Detroit on Monday.

Chairman Hans Dieter Poetsch is in talks about changing the structure with fellow supervisory board members and members of the management board, Volkswagen said.

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