He replaces Matthias Muller who recently stepped down from the post.
Volkswagen's new Chief Executive Herbert Diess embarked on the most far-reaching shake-up in the carmaker's history on Friday, seeking to unite a company whose feuding factions have often slowed reform.
"Not exclusively did he securely explore Volkswagen through that time, together with his group, he likewise on a very basic level realigned the gathering's system".
In the release, the German automaker said it would reorganize its management structure into six areas and china.
Under the new structure, the vehicle brands will be separated into three core divisions - volume, which will include VW, Skoda and Seat; premium, which features Audi; and super premium, which includes Porsche Bugatti, Lamborghini and Bentley.
Replacing Müller will be Herbert Diess, head of the Volkswagen brand.
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"My most important task will now be to join with our management team and our group workforce in consistently pursuing and pushing forward our evolution into a profitable, world-leading provider of sustainable mobility", he said. "In a phase of profound upheaval in the automotive industry, it is vital for Volkswagen to pick up speed and make an unmistakable mark in e-mobility, the digitalization of the automobile and transportation as well as new mobility services".
The plans were announced after Volkswagen board of directors ousted Matthias Mueller as CEO and discussed ways to overhaul the company, which spans motorbikes, buses, trucks and passenger vehicle brands including Ducati, Bentley, Porsche, Audi, Scania and Skoda. About 482,000 were sold in the US, and 11 million around the world.
As well as cars, the VW empire spans motorbikes, bus, and truck operations.
Diess promised to push on with "cultural change" in the company that suffered its deepest crisis when it had to admit in 2015 that it installed software in 11 million diesel vehicles worldwide to cheat on emissions test. Meanwhile, Dr. Franciso Javier Garcia Sanz who has been the head of Procurement and the Chairman of the Supervisory Board of the SEAT brand will be leaving the company.
Another source said that removing Blessing, who also oversees VW's slow-moving efforts to establish a new corporate culture, will be part of a broader reshuffle that could also affect other senior executives.
Meanwhile, Porsche CEO Oliver Blume has moved to the group board of management in charge of group production.