Volkswagen CEO Quits

The 58-year-old Volkswagen CEO will leave the Wolfsburg-based company without seeing through his drastic restructuring program. The plan called for cutting as many as 20,000 jobs and introducing longer industry working hours.

The departure comes as a surprise, since Pischetsrieder's contract was recently extended another five years. But there was already speculation over his tenure this spring. Since then, the relationship between Pischetsrieder and chairman Ferdinand Piech had become increasingly tense.

Piech brought Pischetsrieder to Volkwagen in 2000 from BMW, but is now one of his biggest critics.

Pischetsrieder and Piech clashed over plans for Volkswagen to take part in a deal in the trucking industry. German truck maker MAN, which is 20-percent owned by VW, has made a takeover over bid for Swedish rival Scania but VW is pushing for a three-way alliance between the companies.

Restructuring unpopular

Reactions among the workforce to Pischetrieder's exit is mixed. The restructuring moves were unpopular, but Volkswagen's earnings had begun to improve. It posted a 77 percent rise in net profit and stronger sales for the first nine months of the year, despite the high restructuring costs.

And Guido Reinking, industry analyst with Automobil Woche, said there were no reasons for Mr Pischetsrieder to step aside.

"They are gaining market share in Europe and they are gaining market share in the USA," Reinking told DW-RADIO. "The American market is getting better now for VW, so globally they are on a good track, so there is no figure in the quarterly figures which says Pischetsrieder did not do a good job.”

VW said its board of directors has recommended that Martin Winterkorn, 59, take over from Pischetsrieder Jan.1. Winterkorn is currently CEO of Audi, also part of the Volkswagen group.

The state of Lower Saxony is the second biggest shareholder in VW. Lower Saxony Minister President Christian Wulff said Pischetsrieder had done "successful work" at Volkswagen. He also said he feels Winterkorn is the right man for to replace him.

“And the new direction the company is taking will be followed by Martin Winterkorn, if the board approves his appointment next Friday, which I am sure they will,” Wulff said.

Pischetsrieder won't be idle when he leaves Volkswagen. He also sits on a number of boards, including Audi, Dresender Bank and the Metro group.