Volkswagen brand chief Herbert Diess is to take on the CEO role at Volkswagen Group as the carmaker overhauls its management and corporate structure.

Herbert Diess, CEO of Volkswagen Group

The group announced last night that Matthias Müller steps down as chief executive by mutual agreement, effective immediately.

He departs after less than three years in the chief executive role, which he assumed in late 2015 following the diesel emission saga.

Herbert Diess brings some 19 years in various leadership roles at BMW and joined VW in 2015 as chairman of the board of management of the Volkswagen Passenger Cars brand.

His appointment as chief executive of Volkswagen comes as the group is organised into six business areas and the China region. The carmaker has also introduced Volume, Premium and Super Premium brand groups with subsidiary leadership roles crated.

Following this reorganisation, Herbert Diess will be responsible for Group Development and Research, Rupert Stadler for Group Sales, and Oliver Blume for Group Production.

The new structure is being introduced to streamline group management, leverages synergies in the individual operating units and speed up decision-making.

Mr Diess said: “My most important task will now be to join with our management team and our group workforce in consistently pursuing and pushing forward our evolution into a profitable, world-leading provider of sustainable mobility. In a phase of profound upheaval in the automotive industry, it is vital for Volkswagen to pick up speed and make an unmistakable mark in e-mobility, the digitalisation of the automobile and transportation as well as new mobility services.”

Hans Dieter Pötsch, chairman of the Supervisory Board, recognised Matthias Müller for his “outstanding work”, adding: “He assumed the chairmanship of the Board of Management in the fall of 2015 when the Company faced the greatest challenge in its history. Not only did he safely navigate Volkswagen through that time; together with his team, he also fundamentally realigned the group’s strategy, initiated cultural change and, with great personal commitment, made sure that the Volkswagen Group not just stayed on track but is now more robust than ever before. For that, he is due the thanks of the entire company.”