Volkswagen Management

Desperately Seeking New Blood

VW2
Matthias Müller wants to shake up the management culture at Volkswagen.
  • Why it matters

    Why it matters

    Mr Müller is trying to fill key posts with outsiders to help change VW’s hierarchical management culture, which some say is partly to blame for the emissions scandal.

  • Facts

    Facts

    • As a result of the scandal, VW on Wednesday posted a third-quarter loss of €3.48 billion ($3.85 billion), its first loss in at least 15 years.
    • Mr. Müller says the automaker will in the future place a greater emphasis on profits than growth.
    • VW must shortly fill key posts, including the heads of North America, China and the personnel department.
  • Audio

    Audio

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At his first major public presentation on Wednesday, new Volkswagen chief executive Matthias Müller pledged to focus on rebuilding trust after the emissions scandal rather than growing at all costs.

His predecessors Martin Winterkorn and Ferdinand Piëch were bent on selling more vehicles than Toyota and General Motors, a goal that VW has achieved. But the scandal, which erupted when VW was found to have fitted devices that artificially lowered emissions to millions of engines, has forced the carmaker to radically change its management culture and philosophy.

“Much has been secondary to going ‘higher, faster, further’, especially return on sales,” Mr. Müller said. The priority in future wouldn’t be to sell 100,000 cars more or less than a big competitor, but to achieve qualitative growth. “We must change our thinking and the way in which we deal with each other and with problems and mistakes,” he said in a brief address to investors while presenting VW’s first quarterly loss in at least 15 years.

VW reported a third-quarter operating loss of €3.48 billion, or $3.85 billion, and said the €6.7 billion it has set aside in the period to cover the costs of its biggest ever scandal was likely just the beginning.

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