VW's top labor representative backs Diess as new CEO

Share

Diess said that he will work to increase the efficiency of synergies across the group's companies, highlighting the importance of streamlining decision making processes in order to adapt to the fast-changing vehicle industry.

Diess joined Volkswagen in 2015 after holding an executive position at BMW.

Since joining the company, Diess has worked to revive the Volkswagen brand, launching a multi-year strategy to restructure the automaker's namesake division, increase its profitability and cut emissions.

The 59-year-old Diess was named Thursday as the German automaker's new boss, replacing longtime insider Matthias Mueller.

Under the new structure, the vehicle brands will be separated into three core divisions: volume which will include VW, Skoda and Seat; premium which features Audi; and super premium which includes Porsche Bugatti, Lamborghini and Bentley.

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.

More news: Trump may allow states to drug test food stamp recipients
More news: Lost In Space — New To Netflix
More news: Tonya Harding, Kareem Abdul-Jabbar among 'Dancing With the Stars: Athletes' cast

Chairman of the supervisory board Hans Dieter Potsch said: "The Volkswagen Group's goal is and remains to align the company and its brands with future needs, to safeguard its position among the leaders of the global automotive industry with innovativeness and profitability and to be instrumental in shaping tomorrow's personal mobility with the strength of our group brands".

A few examiners cheered the arrangement of Mr. Diess. "Diess is a man of action, he is the most plausible choice at VW to lead the group into the next phase of its transformation", said Nord LB analyst Frank Schwope, who has a buy rating on Volkswagen.

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.

VW also said works council executive Gunnar Kilian would replace Karlheinz Blessing as human resources chief. The manufacturer will be grouped into six business areas, with the truck and bus division to be prepared for a potential stand-alone stock listing.

Head of purchasing Francisco Javier Garcia Sanz is leaving at his own request and his post is to be filled on an acting basis by Volkswagen brand purchasing head Ralf Brandstaetter, the company said.

Chairman Hans Dieter Poetsch said Diess would have a chief operating officer to oversee day to day issues at the volume segment so that he would not lose focus on the company has a whole.

Share