FRANKFURT — Volkswagen Team named Ralf Brandstaetter as VW manufacturer CEO, marketing him from his present-day position as the brand’s COO.

The adjust — efficient July one — suggests that VW Team CEO Herbert Diess gives up his position as VW manufacturer CEO. The adjust will give Diess greater leeway for his duties as group CEO, VW explained in a assertion on Monday.

In Brandstaetter, fifty one, VW’s supervisory board has picked a company veteran to head its main manufacturer. Porsche CEO Oliver Blume was also a contender for the put up.

Brandstaetter, a German countrywide, joined VW in 1993. He was promoted to manufacturer COO from head of obtaining in 2018.

The leadership dialogue arrives at a time when VW is trying to press by distressing expense cuts at the VW manufacturer with the firm’s potent labor reps.

Diess, sixty one, has embarked on radical reforms of the group, which includes the Audi, Seat, Skoda, Audi, Porsche and Bentley brand names, but has operate into opposition from the labor aspect.

He has occur beneath fireplace after VW was forced to halt product sales of its newest Golfing for the reason that of computer software glitches at a time the company is planning to mass make VW’s ID3 electric powered motor vehicle.

Diess has been pushing to slice expenditures in Germany to help pay back for a 34 billion euro ($38 billion) investment decision in electric powered and autonomous vehicles and fifty billion euros for EV battery procurement.

In addition to forcing VW to embark on a radical electrification system in the wake of the carmaker’s diesel-cheating scandal, Diess appointed BMW supervisor Markus Duesmann as the head of Audi.

Diess was appointed head of the VW manufacturer in 2015 after defecting from BMW and then climbed to the situation of group CEO in April 2018.

Sommer leaves VW

VW also explained its factors and procurement boss, Stefan Sommer, is leaving the company at his individual request and “by amicable and mutual settlement.”

Sommer, 57, joined VW in 2018 from ZF Friedrichshafen where he steered the supplier’s 2015 acquisition of TRW.

Reuters contributed to this report.