Frankfurt Am Main, Apr 10 (AFP) Scandal-hit car giant Volkswagen said today it was considering reshuffling its board and that chief executive Matthias Mueller could be replaced, although no decision has yet been made.
“The Volkswagen group is considering further evolving the leadership structure, which could be connected with changes in the board… a change to the chief executive could be involved,” VW said in a statement.
Supervisory board chief Hans Dieter Poetsch had been “speaking with different members of the supervisory and executive boards” about moving or replacing some of them, it went on, adding that Mueller “signalled he was open to play a part in the changes.” Business newspaper Handelsblatt reported that 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.
A Volkswagen spokesman declined to comment on the rumours when contacted by AFP.
Mueller, a former chief executive of VW subsidiary Porsche, was brought in to replace Martin Winterkorn and is contracted to serve until 2020.
Longtime CEO Winterkorn quit after the firm admitted in 2015 to manipulating 11 million diesel vehicles worldwide to cheat regulatory emissions tests in a scandal that became known as “dieselgate.” Software known as a “defeat device” was used to increase exhaust treatment when cars detected they were undergoing testing, while reducing it under normal on-road driving conditions.
Mueller has chivvied the mammoth carmaker into a massive restructuring, aiming to electrify many of its lines and slim down its operations over the coming decade.
But he himself has 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.
Last month, Mueller said that chief executives of big companies deserved high pay because “one always has one foot in jail”.
“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” with experience at BMW, would be “the best solution as a successor for the next five years,” he added.
Shares in Volkswagen surged in Tuesday afternoon trading, adding as much as five percent on the day before paring their gains to around 4.0 per cent at a price of 170.84 euros around 3:30 p.m. (1330 GMT). (AFP) UZM UZM
This is published unedited from the PTI feed.