Volkswagen considering board changes, may name new CEO

Unions will get a VW board seat if they agree to Herbert Diess as CEO

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 in a statement. For years, Volkswagen lied through its teeth to regulators and customers both at home and overseas about how clean its diesel cars were.

Continuing, Reuters reports: "But the persistent tug of war between its controlling families, unions and other stakeholders have made it hard to drive through structural changes that investors have said are key to the company fulfilling its potential".

Under his leadership, VW Group made painful cuts to costs, invested in electrification and self-driving technologies, and managed to boost sales-all while dealing with the fallout of the emission cheating scandal that has cost the company more than $30 billion so far.

"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", Diess said in the statement.

With Mr Mueller agreeing to go, the controlling Porsche-Piech clan, the state of Lower Saxony and powerful labour leaders settled on Herbert Diess, chief of the namesake brand, as successor, ruling out other top executives such as the chief financial officer, the heavy-trucks chief and Porsche CEO, the people said.




Diess is a former BMW executive who since 2015 has headed the core Volkswagen brand. That project became much more urgent as the diesel scandal generated massive costs, and meant taking on established interest groups.

The company also is replacing its heads of human resources and purchasing.

Mr Mueller - a veteran of the German vehicle company - was promoted from his role heading the Porsche division to take the job heading the entire group. He then took charge of development, but was ultimately passed over for the CEO job, when the Munich-based company picked Harald Krueger in December 2014.

He launched an ambitious reform plan, including investing billions of euros in electric vehicles, but has struggled to push through changes to create a more efficient and focused company. That spurred his move to Volkswagen.

Volkswagen on Tuesday said Mr Mueller had expressed his general willingness to participate in a management overhaul, and it was still to be determined whether efforts to develop a new leadership structure would leave him in place.

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