Volkswagen names Herbert Diess as new CEO, Extensive revision of Volkswagen Group management

“Matthias Müller 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." Chairman of the Supervisory Board Hans Dieter Pötsch

By: | Published: April 13, 2018 11:14 AM
Volkswagen Group Volkswagen Group

Germany based automaker Volkswagen Group has undergone a complete revision of its management and is now confirmed that Matthias Müller has stepped down as the Chairman of the Board of Management by mutual agreement, effective immediately. Volkswagen's Supervisory Board appointed Dr. Herbert Diess as his successor. In a media statement, the company said that "Volkswagen is thus systematically continuing to transform its business and establishing even more efficient Group management in a phase of highly dynamic change in the Company and the entire automotive industry."

Chairman of the Supervisory Board Hans Dieter Pötsch said, “Matthias Müller 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 Volkswagen 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.”

The introduction of the brand groups Volume, Premium and Super Premium, along with the planned preparation for capital market readiness of Truck & Bus, create the basis for a more subsidiary leadership of the Group. The Chairmen of the Board of Management responsible for the brand groups will be taking on additional Group management roles. Following this reorganization, Herbert Diess will be responsible for Group Development and Research, Rupert Stadler for Group Sales, and Oliver Blume for Group Production.

Additional Group functions will be allocated according to the same principle. Due to the special significance of vehicle connectivity, Vehicle IT will be led by Herbert Diess himself; Company IT will be headed by Frank Witter. Procurement and Components are to be combined into one unit going forward.

The new structure streamlines Group management, systematically leverages synergies in the individual operating units and speeds up decision-making.

“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 international automotive industry with innovativeness and profitability and to be instrumental in shaping tomorrow’s personal mobility with the strength of our Group brands. Herbert Diess is the right manager to do that. In realigning the Volkswagen brand, he has demonstrated to impressive effect the speed and rigor with which he can implement radical transformation processes. This accomplishment makes him predestined to fully implement our Strategy 2025 in the decisive years that are now to follow,” Pötsch says.

“The Volkswagen Group is a union of strong brands with great potential. Matthias Müller has laid the groundwork for our transformation. My most important task will now be to join with our management team and our Group workforce in consistently pursuing and pushing forward our evolution into a profitable, world-leading provider of sustainable mobility. In a phase of profound upheaval in the automotive industry, it is vital for Volkswagen to pick up speed and make an unmistakable mark in e-mobility, the digitalization of the automobile and transportation as well as new mobility services,” Diess says.

At its meeting today, the Supervisory Board also decided on two new appointments to the Group Board of Management. Dr. Oliver Blume, Chairman of the Board of Management at Porsche, will belong to the Group’s top governing body going forward.

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