BERLIN (Reuters) – Volkswagen (VOWG_p.DE) said Herbert Diess will take over from Matthias Mueller as chief executive, adding fresh impetus to its efforts to slim down and reorganize the way its 12 brands are managed.
FILE PHOTO: Herbert Diess from the Volkswagen Group presents the new I.D. Vizzion car model during an event at the 88th International Motor Show at Palexpo in Geneva, Switzerland, March 5, 2018. REUTERS/Denis Balibouse/File Photo
The carmaker on Thursday said it will create six new business areas and a special portfolio for China, its largest market, and split its brands into three new vehicle groups with categories for value, premium and super-premium nameplates.
The announcement was made after Volkswagen directors ousted Mueller and deliberated ways to reform an empire which has motorbike, bus, truck and passenger car brands including Ducati, Bentley, Porsche, Audi, Scania and Skoda.
Volkswagen replaced Mueller after he failed to refocus the group’s portfolio of car brands, a key pillar of “Strategy 2025” to transform the company into a leader in cleaner cars after the diesel emissions scandal of 2015.
The appointment of Diess was cheered by analysts.
“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.
Reporting by Andreas Cremer; Editing by Douglas Busvine and Edward Taylor