Published: Sun, April 15, 2018
Economy | By

Minnesota to Replace Diesel Equipment Using VW Settlement

Minnesota to Replace Diesel Equipment Using VW Settlement

It's perhaps Herbert Diess's most attractive trait to the Volkswagen supervisory board at the moment that he's no single-company career man like you'll find in other German carmaker board rooms.

The carmaker said it will create six new business areas and a special portfolio for China, its largest market. The success of Diess' plans hinges on the approval of the Volkswagen supervisory board which is scheduled to meet on Friday.

Separately, VW said works council executive Gunnar Kilian, a close aide to labour boss Bernd Osterloh, will replace group human resources chief Karlheinz Blessing who will stay at VW as an adviser.

Blume's appointment to VW's management board comes a decade after Porsche attempted to swallow the Volkswagen Group in a spectacular, secret coup that then sports vehicle brand chairman Wendelin Wiedeking and chief strategist Holger Harter nearly pulled off - before it all collapsed spectacularly.

Two sources familiar with the matter said on Tuesday that Volkswagen's supervisory board was poised to replace Mueller, a 64-year-old company veteran, with Herbert Diess, the 59-year-old head of its core VW brand. "He assumed the chairmanship of the board of management in the fall of 2015 when the company faced the greatest challenge in its history". He then joined BMW, working his way up to board level via a three-year stint running the company's Oxford plant.

That was a key pillar of "Strategy 2025" which promised extensive cost savings to fund investments to help transform the company into a leader in cleaner cars and new mobility services after the diesel emissions scandal of 2015.

The announcement was made after Volkswagen directors ousted Müller and deliberated ways to reform an empire that includes motorbike, bus, truck and passenger auto brands including Ducati, Bentley, Porsche, Audi, Scania and Skoda.

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

In 2016, a federal judge has approved a $15 billion settlement for claims following the emissions cheating controversy, making it the largest auto-scandal settlement in US history.

He will head up the management board that reports to the group's board of directors and take charge of vehicle development and research as well as vehicle-related information technology.

"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.

According to "SPIEGEL", Diess has expressed a desire to lead the wider Volkswagen Group, as well as its flagship brand Volkswagen, simultaneously.

Just last month, Diess said: "We need diesel, diesel has a future".

Like this: