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A few days ago, after it was reported that the contract extension of Herbert Diess, the current CEO of Volkswagen, was rejected for various reasons, foreign media reported recently that Dis will no longer serve as the CEO of the group and Volkswagen's core brand, which means that Dis will no longer have direct control over the Volkswagen brand.

As a matter of fact, what Deiss is leaving is only the position of Volkswagen brand CEO, because according to the current position of Deiss, he has two positions, including Volkswagen Group CEO and Volkswagen brand CEO. It means that Disney will then only serve as CEO of the group, giving it more energy to manage the company's overall business, including Audi, Bentley, Skoda, Lamborghini and Porsche.

Despite earlier news that Mr Deiss had been rejected for a contract extension until 2025, Mr Deiss's term will run until around 2023, according to Volkswagen's usual five-year CEO term.

As for the new chief executive of the Volkswagen brand, Brandstadt, the current chief operating officer of the Volkswagen brand, will take over according to the personnel change plan, and the appointment will take effect from July 1. In the future, it will be directly responsible for the core passenger car brand of Volkswagen Group.

It is understood that Brandstadt joined the Volkswagen Group in 1993, so he is already very familiar with the Volkswagen Group and has held senior procurement positions in the Seattle department of Germany and Spain. Having been the chief operating officer (COO) of the Volkswagen brand since 2018, he can be said to be an experienced executive.

In response, Deiss said in a statement that Ralph Brandstadt is one of the company's most experienced managers. As a Volkswagen brand transformation will play a role, and achieve the promotion of Volkswagen brand.

In fact, it is also said that Deiss's departure from the Volkswagen brand CEO is due to the failure of some models of the Volkswagen brand, such as the mass production of the eighth-generation golf and pure electric car ID.3 have been plagued by software problems, of which the eighth-generation golf MK8 announced a suspension of delivery in May this year due to software problems, while the ID.3 problem of the first electric car slowed VW's transition to electrification. Therefore, as a Volkswagen brand CEO, Deiss has an unshirkable responsibility, which makes the board of supervisors of Volkswagen veto the reason for the renewal of the contract.

It has to be said that due to software problems, Volkswagen's two core models, the ID.3 and the eighth-generation Golf, have more or less hindered the development of Volkswagen, coupled with the epidemic and the decline in the global economic market, Deiss is facing increasing internal pressure.

After all, one symbolizes the transformation of Volkswagen's brand to electrification, and even affects Volkswagen's "emission gate", while the other is one of Volkswagen's most core competitive models. As Deiss no longer owns the management of the Volkswagen brand, it means that its future plans for China will also be affected to some extent.

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