Volkswagen AG has appointed Matthias Mueller, the chairman of the board of Porsche AG, as the new CEO of the company following the resignation of Martin Winterkorn last Wednesday, according to a press release issued by Volkswagen.
Mueller, 62, will be tasked to handle the emission crisis that has led to the recall of about 2.8 million vehicles in the U.S.
Reuters adds that the number of vehicles being recalled is nearly six times as many as it has admitted to falsifying in the U.S.
The company has been struggling ever since it was found out that they have rigged the emission test on its diesel engine.
Reuters adds that the company has been under huge pressure to take decisive action regarding the biggest business-related scandal in its 78-year history.
Mueller said in the press release that the first thing he will do as CEO is to win back the trust of the consumers.
"My most urgent task is to win back trust for the Volkswagen Group - by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation," he said.
He adds in the press release that he plans to "develop and implement" the most strict "compliance and governance" standard in the auto industry.
"If we manage to achieve that then the Volkswagen Group with its innovative strength, its strong brands and above all its competent and highly motivated team has the opportunity to emerge from this crisis stronger than before," Mueller said.
Henning Gebhardt, the global head of equity at Deutsche Asset & Wealth Management, told Reuters though, that Volkswagen had already missed an opportunity with their choice of CEO.
He said that Mueller's age alone would prevent him to lead the company for 10 years, which means there would talks of succession in the near future.
Max Warburton, an analyst at Bernstein, also told Reuters that he has doubts about the appointment of Mueller.
He questions whether a man who has spent more than 30 years in the company is the right man to signal a break with the past.
Mueller will still be remaining in his post as chairman of the board of Porsche until a successor has been named, according to the press release.
