Scandal Shakes up Management at VW

Scandal Shakes up Management at VW

The Guardian’s Graham Ruddick reports that Volkswagen has radically reorganized its management team in the wake of the scandal over its emissions scandal, in an effort to detoxify the company’s culture and cut costs in the face of what could add up to tens of billions of euros in fines and customer compensation:

The German carmaker has almost halved the number of senior managers reporting directly to Matthias Müller, the chief executive, and brought in several new faces. Müller has pledged to transform the notoriously unwieldy structure of VW after the company admitted that the emissions scandal had occurred because of a “whole chain” of errors and a corporate mindset that tolerated rule-breaking. …

The management changes at VW include Ulrich Eichhorn becoming head of research and development. He replaces Ulrich Hackenberg, who left the company earlier this month after being suspended for two months as part of the investigation into the emissions scandal. Eichhorn previously worked for VW and its brands, including Bentley, for more than a decade until he left in 2012 to take up a position with an industry trade body in Germany. Other changes include Fred Kappler, the head of group services, becoming head of sales, while Porsche veteran Michael Mauer takes over group design and former Seat executive Wolfram Thomas takes charge of production.