Piech will be named chairman of VW's 20-member nonexecutive supervisory board at the annual shareholder meeting April 16.
Under German corporate law, the supervisory board, not the CEO, appoints management board members. That is important because Pischetsrieder needs to assemble his own management team. Given Piech's reputation, the question becomes: Will Pischetsrieder be successful?
'Piech could pull all the strings,' one VW executive speculated. Piech has faced criticism for fostering a secretive, management-by-fear culture at VW.
'There is a lack of people equipped to be efficient managers,' says one analyst. 'No middle manager can make decisions because they haven't been used to doing so. All decisions have been pushed upward.'