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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.

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.

Will a Phaeton EV rise from the VW Dieselgate ashes?

The Volkswagen diesel emissions scandal isn't even close to ending, but in a new announcement the automaker says it is working to rehabilitate its battered image a little bit. In a series of pledges, the German company is putting a serious emphasis on future electrification. Headlining this EV onslaught: the next-gen Phaeton will be fully battery powered. VW is still very light on details about its future flagship, and Tesla shouldn't be shaking in its boots yet. The automaker simply promises "a pure electric drive with long-distance capability, connectivity and next-generation assistance systems as well as an emotional design." According to insiders speaking to Autocar, the Phaeton potentially launches in 2020, and it might share a platform and powertrain with the production version of the Audi E-Tron Quattro concept. A new Phaeton was rumored to be nearly ready earlier this year, but the project was reportedly scrapped to cut costs. VW loses money making the current one, and sedan competes against other products, like the Audi A8. Perhaps the company sees this scandal as a perfect opportunity to revaluate the point of the vehicle. While the Phaeton EV will represent the top of VW's future lineup, electrification will appear further down the line, as well. The automaker will create a new platform called the MEB specifically for compact EVs. Promising ranges between 155 and 311 miles, the architecture will be offered across the VW Group brands and on "both passenger cars and light commercial vehicles." This electrification push will likely affect current models, too, thanks to further engineering of the MQB platform. VW wants the vehicles to support longer-range plug-in hybrids, mild hybrids, and EVs with 186 miles of distance. Since the architecture is already on sale, presumably these are the first vehicles to benefit from the new strategy. VOLKSWAGEN BRAND BOARD OF MANAGEMENT TAKES STRATEGIC DECISIONS Accelerated implementation of the efficiency program creates room for reorientation Streamlined processes leverage further cost-saving potential, including cuts in fixed costs Investments to be reduced by 1 billion euros per year compared with planning – combined with prioritization of projects for the future Product decisions formulated New Phaeton will be electric New Modular Electric Toolkit planned Wolfsburg,October 13, 2015 – The newly-formed Volkswagen Brand Board of Management took further strategic decisions at a special meeting. CEO Dr.