Muller Is Out, Diess Is In! Jens Wonders When The Turmoil At VW Will Come To An End

That was quick! Volkswagen CEO Matthias Muller was ousted swiftly on the 12th of April, after just two-and-a-half years at the top. Muller had been taking the heat for the diesel scandal, and has steered the VW Group through some pretty stormy waters while delivering impressive numbers. He’s now succeeded by Herbert Diess, a former BMW executive known for his no-nonsense management style.

- Jens Meiners

Muller was guilty of a number of gaffes. A few months ago, he called for the end of diesel “subsidies” in Germany (in fact, diesels are not subsidized, but the fuel is taxed slightly less than petrol in Germany). The remarks were not taken kindly by his colleagues in the German auto industry. It was Volkswagen, after all, whose cheating had put diesel in a bad position in the first place. As a result, the entire industry is suffering, and at a loss for how to comply with upcoming emissions and consumption requirements.

Most recently, Muller likened pay caps for executives to measures by Communist East Germany – a politically charged statement in a society that’s focused on equality.

Herbert Diess, who replaces Muller, had seemed to be on his way out of VW just a year ago, when he criticised the mighty labour unions. But he has since become closer with Bernd Osterloh, head of VW’s labour council. The peace, however, is unlikely to last – as few auto executives are as cost-driven as Diess.

And while Diess is a petrolhead who initiated the awesome S1000 RR superbike during his time at BMW, he has since become a proponent of electric mobility – leading efforts to bring a family of all-electric VW models to market under the ‘ID’ moniker.