Volkswagen has announced the appointment of Herbert Diess to its board of management, where he will assume a new function as chairman of the Volkswagen passenger car brand.
It's a function previously overseen by Volkswagen Group chairman Martin Winterkorn. Diess will take up the new role from 1 October 2015.
The bombshell announcement, made official in a media statement this morning, is seen as a major blow to BMW, which has experienced a drain of senior managers in recent times.
56-year-old Diess is currently member of the board of board of management at BMW, where he is heads up research and development.
In his current role he is responsible for not only the existing line-up of standard BMW models and their M division siblings, but also their successor models as well as future technical innovations being pursued by the German car maker.
The appointment of Diess to the position of chairman of the Volkswagen passenger car brand is the first step in what is expected to be a long and drawn out succession strategy at the top of the Volkswagen management ranks.