comscore Scandal-hit Volkswagen expected to name new CEO
News

Scandal-hit Volkswagen expected to name new CEO

With a new CEO, Volkswagen is looking to move on from the "dieselgate" emissions scandal that has dogged it since 2015.

  • Published: April 12, 2018 4:22 PM IST
volkswagen-apple-electric-cars

German car giant Volkswagen is set to replace chief executive Matthias Mueller today, as it seeks to turn the page on the “dieselgate” emissions scandal that has dogged the company since 2015. Also Read - Volkswagen charging robot will find and charge your Electric Vehicle; Here is how it would work

The supervisory board of the world’s leading carmaker will meet a day ahead of schedule and announce its decisions in a statement, a source close to the company told AFP. Also Read - Car makers Hyundai, Kia invest $300 million in Ola

The meeting will begin at 5:00 pm and end “late in the evening”, the source said. Also Read - 5G could improve safety of self-driving cars: Gartner

Volkswagen on Tuesday announced it was considering reshuffling its board and replacing Mueller, in a move that sent stocks in the company surging.

Mueller had “signalled he was open to play a part in the changes” in conversations with supervisory board chief Hans Dieter Poetsch, the company said.

German business newspaper Handelsblatt and national news agency DPA reported Herbert Diess, head of the VW brand — one of the group’s 12 makes of cars, trucks and motorbikes — was slated to take Mueller’s place.

Mueller, a former chief executive of sportscar-building VW subsidiary Porsche AG, was brought in to replace Martin Winterkorn in 2015 and was contracted to serve until 2020.

Longtime CEO Winterkorn quit days after the firm admitted to installing software in 11 million diesel vehicles worldwide designed to cheat regulatory emissions tests in a scandal that became known as “dieselgate”.

Mueller, 64, has steered the mammoth carmaker into a massive restructuring, aiming to offer electric versions of many of its models and slim down its operations over the coming decade.

On his watch, the VW group last year held on to its title as the world’s largest carmaker and made a net profit of 11.4 billion euros ($14 billion).

But he has himself landed in prosecutors’ sights over suspicions he may have known about the diesel cheating before it became public and failed in his duty to inform investors.

“The most important part of getting the crisis under control is over now, so it’s right for VW to look in a new direction,” judged analyst Juergen Pieper of Metzler bank.

Diess, known as a “very good cost manager”, would be “the best solution as a successor for the next five years,” he added.

Shares in Volkswagen climbed 1.7 percent to 176.06 euros in late morning trade in Frankfurt, vastly outperforming the Dax index of leading shares that was up just 0.1 per cent.

Dieselgate has so far cost VW more than 25 billion euros in buybacks, fines and compensation, and the carmaker remains mired in legal woes at home and abroad.

Suspicions of emissions cheating have also spread to other carmakers, shattering diesel’s image as a clean engine and prompting several smog-clogged German cities to mull diesel driving bans.

Despite the challenges, Mueller has managed to bring VW’s share price and profits back up to pre-crisis levels, as customers appeared to largely shrug off the negative headlines.

But observers say he made little progress in shaking up VW’s famously hierarchical corporate culture, which some critics believe discouraged employees from speaking up about the diesel scam.

Having joined from BMW just a few months before the cheating became public knowledge, Diess has the advantage of being largely untainted by dieselgate — giving VW a chance at a fresh start.

In addition to taking on the top job, the 59-year-old Austrian is expected to stay on as VW brand chief.

Described as highly ambitious, Diess has earned a reputation as a fierce cost cutter unafraid of pushing through big changes.

“Diess has no problem making enemies,” the Sueddeutsche Zeitung daily wrote, recounting how the “tough-as-nails” executive drove a hard bargain with suppliers as head of purchasing at BMW.

VW’s supervisory board meeting is also expected to see human resources chief Karlheinz Blessing replaced by works council executive Gunnar Kilian.

German media say such a move would be interpreted as a goodwill gesture towards union leaders, with whom Diess has had a tense relationship in the past.

One of Diess’s biggest challenges as he takes the helm at VW will be to clarify the group’s vision for the future as the auto giant navigates between a pivot towards electric vehicles and clinging to the diesel technology it has invested so heavily in over the years.

Just last month, Diess said: “We need diesel, diesel has a future.” (AFP) AMS AMS

This is published unedited from the PTI feed.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: April 12, 2018 4:22 PM IST



new arrivals in india

Xiaomi Mi 10T Pro
Xiaomi Mi 10T Pro

39,999

Infinix Hot 10
Infinix Hot 10

9,999

Vivo V20 SE
Vivo V20 SE

20,990

Vivo V20
Vivo V20

24,990

Micromax In 1b
Micromax In 1b

6,999

Micromax In Note 1
Micromax In Note 1

10,999

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

14,999

Oppo F17
Oppo F17

17,990

Samsung Galaxy M51
Samsung Galaxy M51

24,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Xiaomi Redmi 9A
Xiaomi Redmi 9A

6,799

Vivo Y20
Vivo Y20

12,990

Xiaomi Redmi 9
Xiaomi Redmi 9

8,999

Nokia 5.3
Nokia 5.3

13,999

Motorola Moto G9
Motorola Moto G9

11,499

Realme C15
Realme C15

9,999

Realme C12
Realme C12

8,999

Samsung Galaxy Note 20
Samsung Galaxy Note 20

77,999

Xiaomi Redmi 9 Prime
Xiaomi Redmi 9 Prime

9,999

Oppo Reno4 Pro
Oppo Reno4 Pro

34,990

Samsung Galaxy M01 Core
Samsung Galaxy M01 Core

5,499

Realme 6i
Realme 6i

12,999

Asus Rog Phone 3
Asus Rog Phone 3

49,999

OnePlus Nord
OnePlus Nord

24,999

Infinix Smart 4 Plus
Infinix Smart 4 Plus

7,999

Xiaomi Redmi Note 9
Xiaomi Redmi Note 9

11,999

Samsung Galaxy M01s
Samsung Galaxy M01s

9,999

Vivo X50 Pro 5G
Vivo X50 Pro 5G

49,990

Vivo X50 5G
Vivo X50 5G

34,990

Realme C11
Realme C11

7,499

Poco M2 Pro
Poco M2 Pro

13,999

Realme X3
Realme X3

24,999

Realme X3 SuperZoom
Realme X3 SuperZoom

27,999

Tecno Spark Power 2
Tecno Spark Power 2

9,999

Oppo A12
Oppo A12

9,990

Oppo A52
Oppo A52

16,990

Samsung Galaxy A21s
Samsung Galaxy A21s

15,999

Oppo Find X2
Oppo Find X2

64,990

Motorola One Fusion Plus
Motorola One Fusion Plus

17,499

Samsung Galaxy A31
Samsung Galaxy A31

20,999

Samsung Galaxy M01
Samsung Galaxy M01

8,999

Samsung Galaxy M11
Samsung Galaxy M11

10,999

Infinix Hot 9 Pro
Infinix Hot 9 Pro

9,999

LG Velvet
LG Velvet

Price Not Available

Xiaomi Mi Note 10 Lite
Xiaomi Mi Note 10 Lite

Price Not Available

Apple iPhone SE 2020
Apple iPhone SE 2020

42,500

Honor 30 Pro
Honor 30 Pro

Price Not Available

Honor 30
Honor 30

Price Not Available

OnePlus 8
OnePlus 8

44,999

OnePlus 8 Pro
OnePlus 8 Pro

54,999

Xiaomi Redmi Note 9 Pro
Xiaomi Redmi Note 9 Pro

13,999

Motorola Moto E4
Motorola Moto E4

8,999

Samsung Galaxy On Max
Samsung Galaxy On Max

9,775

nubia N2
nubia N2

15,999

Karbonn K9 Kavach 4G
Karbonn K9 Kavach 4G

5,290

Motorola Moto C Plus
Motorola Moto C Plus

6,999

Best Sellers