Volkswagen CEO plans to shrink management board

Volkswagen's new CEO Oliver Blume plans to shrink the size of the German car brand's management board, claims a Reuters report. The move comes to sharpen the automaker's focus after turbulent few years under the former CEO Herbert Diess. The report further claims that the number of board seats could be cut to eight or nine, reduced from 12 under former chief Diess. However, no official announcements have been made yet.

The report points out that the board members would be assigned with some dual functions. This would be a significant step after Blume takes over the new role on September 1 this year.

The report also claims that the Porsche and Piech families, who control holding firm Porsche SE - which owns most of Volkswagen's voting rights - are hoping to return the group to calmer waters after the turmoil of the Diess years. Blume's appointment reflects efforts by Volkswagen's controlling shareholder families to keep the group on a shorter leash and to have a greater say over strategic matters.

Blume is expected to transfer responsibility for production to someone else, the report claimed. However, it has not been decided who could take that role or whether it would remain at the board level. According to company sources, Volkswagen's supervisory board is due to hold its next regular meeting at the end of September.