Outgoing Volkswagen Boss Mueller May Stay On In Other Post

Outgoing Volkswagen Boss Mueller May Stay On In Other Post

The change in CEO was part of a wider management shake-up, the carmaker said.

The 64-year-old Mr Mueller will be replaced before Volkswagen's annual general meeting on May 3, the Bild newspaper said yesterday.

Diess is a former BMW executive who since 2015 has headed the core Volkswagen brand.

Under Mr Mueller - who was talked into taking the top job in the chaotic days following the public disclosure of the diesel cheating - VW has weathered the blows from the scandal while embarking on an aggressive expansion into electric cars.

Over 90 percent of the Wolfsburg plant's 60,000-strong workforce are members of Germany's largest union, IG Metall, and the 10 labor representatives on the supervisory board have a say in appointing members of the management board.

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Mueller had attempted to right the ship after VW admitted to installing software in 11 million diesel vehicles worldwide created to cheat regulatory emissions tests.

Labor leaders opposed Mueller's plans for selling motorcycle maker Ducati and have scuppered other cost cut plans in the past.

According to the settlement, the VW scandal resulted in 600 more tons of NOx being emitted into Minnesota's air than should have been possible under emissions regulations.

VW's power structure rests on close ties between management, workers and politicians from Germany's northwestern state of Lower Saxony, where VW is the largest private-sector employer with over 100,000 workers at six factories.

That plan comes as rivals, including Fiat Chrysler and Daimler, consider spin-offs or legally separate divisions to boost their share prices and raise cash to fund development of electric and self-driving cars. His contract is due to run until 2020.

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Even more impressive is the fact that the company remains profitable despite the millions in fines, hundreds of thousands of cars recalled and the drop in sales across European markets.

"Rural utilities, cities, counties and schools have all expressed interest in electrifying their fleet vehicles and buses and this plan makes sure people in every corner of the state has a chance to access these funds, " Noble said in responding to the state plan.

"Bringing Herbert Diess' CEO nomination forward is the next step in transforming VW into a more modern and effective company", Evercore ISI analyst Arndt Ellinghorst said in a note.

The statement said board of directors head Hans Dieter Poetsch was in discussions with top managers about how their responsibilities are divided.

The brand expects 300,000 units to be retro-fitted to cars this year alone.

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"Diess will hold both positions, CEO of the company and the VW brand", one of the sources said, speaking on condition of anonymity because of the sensitivity of the subject.

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