Published at http://www.eivnews.com/archives/7629
After two and a half years as CEO of Volkswagen (VW), Matthias Mueller will be replaced by VW core brand head Herbert Diess.
The change, among a number of other management shifts, follows the company’s effort to streamline operations and adapt to an ever-changing industry.
Mueller was named CEO in September of 2015 in the midst of a major scandal in which the company was busted for having rigged millions of diesel powered cars to cheat on emissions tests, according the Wall Street Journal. VW Board Chairman Hans Dieter Poetsch called the wake of the scandal “…the greatest challenge in [Volkswagen’s] history.”
By 2017, under Mueller, VW was churning out strong profits and share prices had gone up. However, a power struggle between the Porsche and Piech families – owners of VW – and Mueller have most likely resulted in the CEO change, reports the Wall Street Journal.
Mueller has gone against the wishes of the families on multiple occasions, including when he discussed selling the Ducati motorcycle brand and when he advocated for government funding for the development of electric cars and an end to tax subsidies for diesel powered vehicles, also according to The Wall Street Journal.
Mueller has also expressed frustration over the company’s use of animals in experiments involving exhaust inhalation, says the Wall Street Journal.
The company is currently transitioning to an almost completely new operational structure involving the creation of several new divisions within Volkswagen, ABC News reports.
“This is an evolution and not a revolution,” CEO Diess said at a press conference on Friday in an attempt to play down the extent of the changes occurring within the company. Using the experience he gained as core brand head, Diess hopes to strengthen the many brands within the company and have Audi overtake competitors like Mercedes-Benz and BMW, according to Reuters.
In addition to his responsibilities as CEO, Diess is expected to directly oversee vehicle information technology and group development and research, as well as help the company transition into the world of electric and self driving cars, according to USA Today.