FRANKFURT -- Volkswagen Group named Ralf Brandstaetter as VW brand CEO, promoting him from his current role as the brand's COO.
The change -- effective July 1 -- means that VW Group CEO Herbert Diess gives up his role as VW brand CEO. The change will give Diess greater leeway for his tasks as group CEO, VW said in a statement on Monday.
In Brandstaetter, 51, VW's supervisory board has picked a company veteran to head its core brand. Porsche CEO Oliver Blume was also a contender for the post.
Brandstaetter, a German national, joined VW in 1993. He was promoted to brand COO from head of purchasing in 2018.
The leadership discussion comes at a time when VW is attempting to push through painful cost cuts at the VW brand with the company's powerful labor representatives.
Diess, 61, has embarked on radical reforms of the group, which includes the Audi, Seat, Skoda, Audi, Porsche and Bentley brands, but has run into opposition from the labor side.…