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New CEO Mueller to VW's rescue?

Friday, September 25, 2015 - 01:40

Volkswagen bets on Porsche boss Matthias Mueller as a new CEO to help it ride the storm over its US emissions scandal. But, as Ivor Bennett reports, the crisis deepens as officials in Europe and the US step up investigations.

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Is this the man to steer VW out of trouble? As expected, Matthias Mueller is stepping out of the driving seat at Porsche, and taking the wheel of its parent. The announcement finally coming after a day of closed door meetings at company HQ. SOUNDBITE (German) MATTHIAS MUELLER, CEO, VOLKSWAGEN, SAYING: ''I will personally do everything I can to win back the trust of our customers, our colleagues, our partners, investors and the general public.'' Mueller's been part of the VW machine since the 1970s. But the top job only came available on Wednesday after Martin Winterkorn stepped down. For CCLA's James Bevan, appointing a successor has come too soon. (SOUNDBITE) (English) CHIEF INVESTMENT OFFICER, CCLA INVESTMENT MANAGEMENT, JAMES BEVAN, SAYING: "Change is required but I have to say that I think it's a very early announcement in the context of the gravity of the challenges that VW faces. It's well recognised that there's a strong cadre of underlying managers but I do worry that this does not deal with the fundamental governance issues that VW must recognise." The company has promised to dismiss those tainted by the emissions scandal. And is reportedly considering a new corporate structure. But the end of the crisis is still not in sight. It's emerged that 2.8 million vehicles in Germany were affected by the emissions test manipulations, that were originally discovered in the U.S. Where a multi-state investigation has now been launched. Baader Bank's Robert Halver. (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "It's easier to predict the next day's lottery numbers than it is to say how much this will cost VW." Rumours of Mueller's appointment had seen the company's shares jump 4 percent in early trading. But that soon disappeared - closing down 4 percent, VW is now the cheapest auto stock in the world.