After a dramatic year for Volkswagen management, CFO Hans Dieter Poetsch has been announced as the company's next chairman. But as Kirsty Basset reports, there may be some bumpy roads ahead.
After a turbulent year, the question of who will take the helm at the world's largest carmaker has been settled. Hans Dieter Poetsch, the CFO for the last thirteen years, is set to become the next chairman of Volkswagen. It follows the dramatic resignation of former chairman Ferdinand Piech in April, following a power struggle with CEO Martin Winterkorn. IG's Alastair McCaig says it was a missed opportunity to add more diversity to the board. (SOUNDBITE)(ENGLISH) IG MARKET ANALYST ALASTAIR MCCAIG SAYING: "There's been a reorganisation of internal positions rather than fresh faces with fresh ideas and fresh perspectives being brought into the top tier of management." It came a day after the board proposed extending Winterkorn's contract as CEO for a further three years. (SOUNDBITE)(ENGLISH) IG MARKET ANALYST ALASTAIR MCCAIG SAYING: "It will give a little bit of clarity to the board and I guess a little bit more confidence to the investment community." The company overtook Toyota as the world's largest carmaker earlier this year, delivering more vehicles in the January to June period. But it did so less efficiently than the Japanese carmaker - with almost 600,000 employees, compared to just over 340,000 at Toyota. VW is in the midst of an overhaul to its corporate structure to boost profits. Now Poetsch faces the the task of reining in some of the company's bloated operations to boost profits, even if that means job cuts in Germany. And that's against a challenging backdrop for the industry - with a cooling Asian market and volatile oil prices taking their toll.