Volkswagen boss resigns

Bernd Pischetsrieder, chief executive officer of Volkswagen Group has resigned in a shock move.

Mr Pischetsrieder had been formally endorsed by the board of VW for another five- year term in May of this year. He had been locked in battle with Ferdinand Piech, the chairman of VW and former chief executive officer.

Mr Pischetsrieder saw the need to trim the bloated cost structure of VW, but was opposed by Mr Piech who, in large part, was responsible for the situation. It is not yet clear what the resignation means.

His replacement is Martin Winterkorn, the former boss of Audi - the division which Mr Piech used to run with an iron fist. Is this a sign that Mr Piech is tightening his grip or is it a prelude to the eventual appointment of Wendelin Wiedeking, the boss of Porsche, who is widely tipped as the man who can finally turn around VW?