The Volkswagen Group has announced that Hans Dieter Poetsch, the chief financial officer of the company, has been nominated by the shareholder representatives of the Supervisory Board of Porsche Automobil Holding SE to be elected as chairman of the Supervisory Board of Volkswagen AG, according to a press release issued by Volkswagen.
The nomination was supported by the Executive and Nomination Committees of the Supervisory Board of Volkswagen AG.
Berthold Huber, deputy chairman of the Supervisory Board of Volkswagen AG, said in the press release that they are confident Poetsch is the right candidate for the position of chairman of the Supervisory Board.
"Mr. Poetsch is characterized by strategic vision, comprehensive knowledge of the automotive industry and considerable expertise in the financial markets", he said.
Reuters adds that the appointment of Poetsch will put Volkswagen on course to be on calmer waters following a power struggle within the company.
Ferdinand Piech, the chairman who Poetsch will succeed, was ousted from his position in April after clashing with CEO Martin Winterkorn over strategy.
Reuters adds that Poetsch's nomination was supported by the rival factions, including Piech himself.
A source familiar with the company's thinking told Reuters that Winterkorn also supported the move to elevate Poetsch.
The Supervisory Board of Porsche, who owns 51 percent of Volkswagen, will first have to adopt a formal resolution on Poetsch election during its Extraordinary General Meeting on November, according to the press release.
They then have to submit the formal resolution to the Supervisory Board of Volkswagen then decide on when to conduct its Extraordinary General Meeting to formally elect Poetsch to be the chairman of its Supervisory Board.
Arndt Ellinghorst of research firm Evercore ISI told Reuters that the nomination of Poetsch to be Volkswagen's chairman is "good news."
"Poetsch has been advocating an increased focus on consolidating VW's business post an era of M&A," he said.
Once appointed as chairman, Volkswagen said in the press release that they will find a successor to Poetsch's position of CFO without delay.
