Volkswagen to Replace CEO with VW Brand Chief

RONNY HARTMANN/AFP/Getty Images)

By Andreas Cremer and Jan Schwartz of Reuters

Volkswagen (VOWG_p.DE) is poised to replace Chief Executive Matthias Mueller with the head of its core VW brand, Herbert Diess, two people familiar with the matter said, as it looks to give fresh impetus to its recovery from an emissions scandal.

The German carmaker said on Tuesday it was considering a change in leadership as part of a broader management overhaul, but gave few details. The 64-year-old Mueller’s contract is due to run until 2020.

The move comes after Europe’s largest automaker has been hampered by infighting among its powerful stakeholders, which include the Porsche and Piech families, the German state of Lower Saxony, and labor leaders.

Shares in Volkswagen jumped on the news, and closed up 4.5 percent at 171.58 euros.

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