Volkswagen Appoints Herbert Diess As New Group CEO

The Board of Management and Supervisory Board of Volkswagen have restructured the group's management structure and announced Dr. Herbert Diess to replace Matthias Muller as the new Chairman of the Board of Management. Muller steps down as chairman by mutual agreement, effective immediately. Moreover, Porsche CEO Oliver Blume is appointed to the Group Board of Management.

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Chairman of the Supervisory Board Hans Dieter Potsch said, "Matthias Muller has done outstanding work for the Volkswagen Group. He assumed the chairmanship of the Board of Management in the fall of 2015 when the company faced the greatest challenge in its history. Not only did he safely navigate VW through that time; together with his team, he also fundamentally realigned the group's strategy, initiated cultural change and, with great personal commitment, made sure that the Volkswagen Group not just stayed on track but is now more robust than ever before. For that, he is due the thanks of the entire company."

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Under the plans announced on Thursday, Volkswagen will divide itself into six new business areas, plus a portfolio for China, as part of an effort to decentralize responsibility and improve efficiency. The carmaker will prepare its truck and bus division for "capital market readiness" by making it a public limited company as a prelude to a potential listing, confirming a Reuters report from last month. The new car brands will be Volume, Premium and Super Premium. Earlier on Thursday, sources had told Reuters that VW would reorganize its brands into these groups.