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Matthias Muller officially named VW Group CEO

While the vast number of rumors made it seem like a foregone conclusion, Porsche boss Matthias Muller has officially been named Volkswagen Group CEO to replace the recently resigned Martin Winterkorn. His contract runs through the end of February 2020, and until a replacement is found, Muller also gets to hang onto his old job as chairman of Porsche. At the same time, the VW Group Supervisory Board is announcing a massive structural reorganization across the entire company, with the new management model in place by the beginning of 2016. Contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. The board wants a greater emphasis on brands and regions going forward, and the scale of this shift can be seen in the US. On November 1, VW Group business in the US, Mexico, and Canada is being combined under the leadership of current Skoda chairman Winfried Vahland. However contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. Other brands are also seeing some significant changes mechanically. Porsche, Bentley, and Bugatti now fall under the Group's "sportscar and mid-engine toolkit." This means that the brands will start sharing standardized technical parts. A Chief Technical Officer across all of the company's brands will also start working toward future innovations. The new brand-centric view means the end of a group-wide production department. "Going forward, the brands and regions will also have greater independence with regard to production. So it follows that they should also hold the responsibility for these activities," Berthold Huber, interim Chairman of the Supervisory Board, said in the announcement. In a statement with the press release about his promotion, Muller promised to turn the company around after such an international crisis. He said: "My most urgent task is to win back trust for the Volkswagen Group – by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation. Under my leadership, Volkswagen will do everything it can to develop and implement the most stringent compliance and governance standards in our industry." Matthias Muller appointed CEO of the Volkswagen Group Muller remains Chairman of Porsche AG until a successor has been found Matthias Muller (62) has been appointed CEO of Volkswagen AG with immediate effect.

What do J.D. Power's quality ratings really measure?

Check these recently released J.D. Power Initial Quality Study (IQS) results. Do they raise any questions in your mind? Premium sports-car maker Porsche sits in first place for the third straight year, so are Porsches really the best-built cars in the U.S. market? Korean brands Kia and Hyundai are second and fourth, so are Korean vehicles suddenly better than their US, European, and Japanese competitors? Are workaday Chevrolets (seventh place) better than premium Buicks (11th), and Buicks better than luxury Cadillacs (21st), even though all are assembled in General Motors plants with the same processes and many shared parts? Are Japanese Acuras (26th) worse than German Volkswagens (24th)? And is "quality" really what it used to be (and what most perceive it to be), a measure of build excellence? Or has it evolved into much more a measure of likeability and ease of use? To properly analyze these widely watched results, we must first understand what IQS actually studies, and what the numerical scores really mean. First, as its name indicates, it's all about "initial" quality, measured by problems reported by new-vehicle owners in their first 90 days of ownership. If something breaks or falls off four months in, it doesn't count here. Second, the scores are problems per 100 vehicles, or PP100. So Power's 2015 IQS industry average of 112 PP100 translates to just 1.12 reported problems per vehicle. Third, no attempt is made to differentiate BIG problems from minor ones. Thus a transmission or engine failure counts the same as a squeaky glove box door, tricky phone pairing, inconsistent voice recognition, or anything else that annoys the owner. Traditionally, a high-quality vehicle is one that is well-bolted together. It doesn't leak, squeak, rattle, shed parts, show gaps between panels, or break down and leave you stranded. By this standard, there are very few poor-quality new vehicles in today's U.S. market. But what "quality" should not mean, is subjective likeability: ease of operation of the radio, climate controls, or seat adjusters, phone pairing, music downloading, sizes of touch pads on an infotainment screen, quickness of system response, or accuracy of voice-recognition. These are ergonomic "human factors" issues, not "quality" problems. Yet these kinds of pleasability issues are now dominating today's JDP "quality" ratings.

Driving the million-mile Porsche 356

Maybe you've seen or heard about the Porsche 356 with almost one-million miles (though it doesn't look like it), but Petrolicious finally has produced a video to show us what it's like to drive the 982,000-mile car. Guy Newmark's beautiful, dark-blue 1964 356C looks great in motion - much better than in photos - and serves to remind us not only what meticulous car care can do for old classics, but that old Porsches were built to last.
So how fastidious is Newmark about maintaining it? He takes the car to his mechanic of 40 years every 3,000 miles for an oil change and to fix anything that needs attention.
Newmark says his 356 "is everything you could want," and that he finds errands to do just to go drive it. We would, too. The next-best thing is to watch the inspiring video below of the well-traveled Porsche.