You are here: Home » Reuters » News
Business Standard

VW names new boss to steer sweeping overhaul

Reuters  |  BERLIN 

(Reuters) - has chosen as its new in an overhaul that includes streamlining the company's multiple brands into just three groups while preparing its truck business for a potential listing.

The plans were announced after board of directors ousted as and discussed ways to overhaul the company, which spans motorbikes, buses, trucks and passenger brands including Ducati, Bentley, Porsche, Audi, and Skoda.

Mueller's replacement with brand Diess follows slow progress in reorganising the group's brands, a key pillar of "Strategy 2025" to transform the Germany's biggest company into a in cleaner cars and to move on from its diesel emissions scandal of 2015.

For its the biggest overhaul since it became a under former Ferdinand Piech, a grandson of Ferdinand

Under the plans, announced on Thursday, will divide itself into six new business areas, plus a portfolio for China, as part of an effort to decentralise 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 report from last month.

The new brands will be Volume, Premium and Super Premium. Earlier on Thursday, sources had told that would reorganise its brands into these groups.

Analysts welcomed the appointment of Diess, a former who has more than doubled profitability at the brand since taking charge in 2015.

"Diess is a man of action, he is the most plausible choice at to lead the group into the next phase of its transformation," said Frank Schwope, who has a "buy" rating on

Separately, said Gunnar Kilian, a to labour boss Bernd Osterloh, will replace group human resources who will stay at as an Earlier this week, sources told that Kilian would replace Blessing.

Purchasing Francisco Javier Garcia Sanz, the longest-serving top at VW, will leave the company, the carmaker said.

will tighten leadership duties within the group and empower the heads of the three vehicle categories to take on company-wide responsibilities.

With VW's core namesake brand shouldering the bulk of development spending within the group, Diess will also become responsible for R&D activities across the group. Rupert Stadler, of luxury division will take charge of group sales.

Oliver Blume, of sports brand and newly appointed to the group board, will oversee production at the multi-brand organisation, said, confirming a report.

Diess, Stadler and Blume will also take charge of the new groups Volume, Premium and Super Premium respectively, said, without giving more details.

The German carmaker's deliberations come as rival and suppliers including and work on ways to slim down and divest non-core assets.

Analysts at say there is 160 billion euros worth of "hidden value" in the European autos sector that could be unlocked through portfolio simplifications.

(Reporting by Andreas Cremer; Writing by Editing by and Jane Merriman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 01:55 IST