Volkswagen announced on Wednesday that its CFO Hans Dieter Poetsch shall be replacing Ferdinand Piech, as chairman of the board of directors. Despite concerns regarding Poetsch’s relationship with the current management and chances of conflict of interest, he has full backing of majority shareholders Piech and Porsche.
“Mr. Poetsch has distinguished himself through his strategic insight, knowledge of the automobile industry, and his expertise in financial matters,” said board member Wolfgang Porsche.
The multinational automotive company has recently had to take tough decisions to resolve issues related to a scandal that broke out in September this year. The company has accepted that it has cheated consumers by installing software to manipulate results in emissions tests. Around 11 million of its diesel cars released worldwide are believed to have this flaw and VW has agreed to recall them all and fix them by the end of next year.
If everything goes “as planned, we can start the recall in January…All the cars should be in order by the end of 2016,” said newly appointed CEO Matthias Mueller.
After the scandal became public, many other European carmakers also came under the scanner and the German Motoring Organization released a statement suggesting that Mercedes, BMW and other manufacturers may also have been involved in the scandal. Many countries launched their private investigations in the matter and some have banned imports of all VW cars that may have this defect. In an attempt to restore consumer loyalty and trust, the company has suspended R&D chiefs of the main brand and of Audi and Porsch.