UPDATE: Volkswagen names core brand head Herbert Diess to replace Matthis Mueller as CEO.

Diess has a reputation for clashing with unions over cost-cutting measures, according to the BBC.

Volkswagen will also reorganize their 12 brands into four to six new vehicle divisions. The German automaker owns other automotive brands such as Porsche and Audi.

Diess also has a more diversified history in the automotive business than his predecessor Matthias Mueller.

Mueller is a four-decade veteran at VW, whereas Diess has worked for German auto-parts maker Bosch and joined BMW in 1996. After nine years there, he moved to Volkswagen in 2015 right before the infamous diesel emission scandal.


PREVIOUS STORY: FRANKFURT, Germany (AP) - Volkswagen Group says it is contemplating a management reshuffle that raises questions about CEO Matthias Mueller's future with the company.

The company said Tuesday that it "considers a further development of the management structure of the group" and that "this could include a change in the position of the chairman of the board of management," the German term for CEO.

The statement said board of directors head Hans Dieter Poetsch was in discussions with top managers about how their responsibilities are divided.

It said the result of the talks was "currently open" and that Mueller "showed his willingness to contribute" to the changes.

Germany's Handelsblatt business publication reported, however, that Mueller would be replaced by Herbert Diess, head of the core Volkswagen brand.

Mueller, 64, took over suddenly in 2015 when predecessor Martin Winterkorn fell victim to the company's scandal over cars rigged to cheat on diesel emissions tests. He has led the company through the scandal to record sales and strong profits.

Diess was regarded as a potential future CEO when he joined Volkswagen from BMW in July, 2015. But when Winterkorn fell, he had only been with the company for less than three months.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.