Volkswagen appoints a new chairman

A reversal of roles takes place at Volkswagen AG, with the selection of its chief financial officer, Hans Dieter Pötsch, as chairman.

The appointment dashes the hopes of Pötsch's current boss, Martin Winterkorn, of being chairman himself.

It also puts him in charge of 68-year-old Winterkorn, whose contract as chief executive had just been extended by two years when Pötsch's appointment was announced Thursday.

"It's unpleasant for Winterkorn, but he could not be chairman. He could only be CEO or leave," Philippe Houchois, an automotive analyst told the Wall Street Journal.

The Porsche and Piëch clans that control the world's biggest automaker reportedly voted unanimously in favor of Pötsch, who has been the German group's CFO for 13 years.

A man of gentle demeanor, 64-year-old Pötsch is seen as a neutralizing force in the company, having kept a healthy distance from Winterkorn or Ferdinand Piëch, former chairman of VW.

Winterkorn and Piëch earlier this year clashed over strategy. After failing to oust the chief executive, Piëch stepped down as chairman in April but remained on the supervisory board of Porsche SE, a majority shareholder of VW. Berthold Huber, former head of the IG Metall trade union, served as interim chairman.

Prior to Pötsch's appointment, there had been reports Winterkorn might resign as CEO and assume the post of chairman.

"We could not imagine that Winterkorn becomes a member of the supervisory board," an insider told the Wall Street Journal. "In the end, yes, Piëch stopped Winterkorn."

Like Piëch, Pötsch is Austrian and is close to the controlling families. Their ties were further cemented when Pötsch secured a capital increase, helping the Porsche and Piëch family holding weather a financial storm arising from a failed takeover of the larger VW.

Pötsch now faces the task of maintaining harmony in the company while trying to boost profits.

Wolfsburg-based Volkswagen is composed of various stakeholders who could block needed reforms. Among them are labor representatives as well as its home state of Lower Saxony.

"His appointment lays the foundations for a trusting relationship between the management and supervisory board," said Lower Saxony premier Stephan Weil in a statement.

VW surpassed Toyota as the largest carmaker earlier this year, after delivering 5.04 million vehicles between January and June. That's more than Toyota's 5.02 million. But Toyota was more efficient, as it employed far fewer people in accomplishing the task.

In November, VW will hold a shareholder meeting. There Pötsch is expected to be elected to the helm of VW's 20-member board, which will then name Pötsch's successor as CFO.