According to the most recent media reports, Volkswagen AG’s 20-person supervisory board meeting Friday will deliver a host of changes at the tarnished automaker, including a new chief executive officer.
In a move to repair some of the reputation damage incurred after the company admitted it had cheated on emissions testing in the US and that 11 million cars were equipped with the rigged software around the world, VW AG is going to name Porsche brand chief Matthias Mueller as its new chief executive officer. The moves would also include the ousting of several top executives. The 20-person supervisory board meets Friday to agree on Mueller’s naming, a four-decade company veteran, according to sources that have knowledge of the matter. The 62-year-old Porsche boss enjoys the backing of the controlling family and is also agreed by the carmaker’s influential labor leaders.
The scandal worsened this week and CEO Martin Winterkorn decided to leave the post as the scandal wiped off around 0 billion euros ($22.4 billion) off the company’s market cap. Other sources point out the next resignations will come from Audi development head Ulrich Hackenberg and Porsche development chief Wolfgang Hatz. The former was a close Winterkorn collaborator – in charge previously with VW brand development, while Hatz lead the motor development unit. Ratings services Standard & Poor’s, Moody’s and Fitch gave negative reviews to the company – all weighing a lower rating for the scandal engulfed group. The European automakers’ association, ACEA, said the blame was entirely with Volkswagen, claiming that “there is no evidence this is an industry-wide issue,” in a recent statement.