VW to hand unions management board seat in reshuffle

VW to hand unions management board seat in reshuffle

VW to hand unions management board seat in reshuffle

Volkswagen has also put huge emphasis on China, branding the market "decisive" for its future success.

Mueller's comments exhibited "a lack of sensitivity at a hard time for VW", Lower Saxony's economic minister Bernd Althusmann, who also sits on VW's supervisory board, told German daily Hannoversche Allgemeine Zeitung.

Mueller's possible replacement will likely face similar challenges to get Volkswagen's stakeholders to unite.

"Diess will hold both positions, CEO of the company and the VW brand", one of the sources said, speaking on condition of anonymity because of the sensitivity of the subject.

Prior to joining VW, Diess was an executive at BMW.

"I don't see an obvious trigger that would have prompted this", said Christian Ludwig, an analyst at Bankhaus Lampe.

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Mr Mueller had been appointed in 2015 in the aftermath of the diesel scandal and was contracted to be in charge until 2020 although he had commented on being frustrated with the pace of Volkswagen's transformation and recently about his ability to turn around the brand's image following revelations the company had tested toxic fumes on monkeys.

The management revamp comes after the company posted record profit past year. The company sold a record 10.74 million vehicles, making it the world's largest carmaker, though the title is disputed by the Renault-Nissan-Mitsubishi alliance, which sold 10.6 million and says Volkswagen is counting trucks that aren't cars.

Mueller, 64, was head of Volkswagen's richly profitable Porsche division when he unexpectedly was handed the CEO job in September 2015. The complexity extends to its main shareholder, Porsche Automobil Holding SE, where Poetsch serves as the CEO and Mueller as a top executive. Porsche said separately any changes at VW would have a knock-on effect for it.

On Wednesday four sources close to the company told Reuters that the supervisory board would seek to bring works council executive Gunnar Kilian onto the company's management board to try to secure backing for Diess and his plans.

Bloomberg's Eyk Henning contributed.

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