New streamlined structure for VW

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Herbert Diess, the head of VW's namesake brand, will become chief executive officer as well as overseeing technology across the organization, the company said Thursday in a statement. By mutual agreement, a top Manager will leave this post immediately.

The change in CEO was part of a wider management shake-up, the carmaker said. "He assumed the chairmanship of the Board of Management in the fall of 2015 when the Company faced the greatest challenge in its history", Hans Dieter Potsch, VW board chairman, said in a news release announcing the change.

Blume, Stadler and Frank Witter take on production, sales and IT in what is reminiscent of a set-up that has worked well at FiatChrysler.

He assumes control from Matthias Mueller, who was designated in 2015 at the stature of the diesel emanations outrage.

Some analysts cheered the appointment of Mr Diess.

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Gunnar Killan, formerly secretary-general of the VW Group Works Council, has been named to the Group Board of Management for Human Resources.

More insights about the rebuilding are required to be uncovered at a question and answer session at VW's Wolfsburg base camp on Friday morning.

Volkswagen surprised markets earlier this week when it revealed it was considering reshuffling its board and replacing Mueller. The board of directors turned to longtime company employee Mueller, who started at Audi in 1978.

As the names suggest, the brands will be divided according to product value, with the likes of Volkswagen, Skoda and SEAT found in the Volume category, while Lamborghini, Porsche and Bentley will make up the Super Premium segment of the business.

Diess moved over from BMW in 2015 shortly before the Dieselgate scandal broke.

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Despite the high costs in reputation and fines, the company under Mueller's two-year stewardship achieved record sales of 10.74 million vehicles in 2017 and made 11.6 billion euros ($14.3 billion) in profit.

"It's right for VW to look in a new direction", judged analyst Juergen Pieper of Metzler bank.

Shares in Volkswagen closed almost two percent higher to 176.60 euros ahead of the closely-watched board meeting, outperforming the Dax index of leading shares that was up almost one percent. Diess will also be responsible for VW Group development and research, as well as Vehicle IT.

Diess appeared to be on his way out at VW after a public clash with Osterloh who then accused him publicly of breaking promises and unduly pushing cost cuts.

"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. He helped steer the company out of its diesel emissions scandal and into a new era of investment in electric cars.

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