Audi names new CEO to replace Duesmann

Audi will replace CEO Markus Duesmann with Volkswagen Group strategy chief Gernot Doellner.

Doellner will take over from Duesmann on Sept. 1, Audi said in a statement on Thursday.

Duesman's future had been in doubt following a number of mishaps and slow progress on innovation that has seen the luxury brand fall behind competitors BMW and Mercedes-Benz.

Audi is seeking to catch up with rivals in the dash towards electrification, including in China, the world's top car market.

Duesmann, 54, a former BMW executive, has led Audi since 2021. During his tenure, Audi partly helmed VW Group’s ill-fated software efforts that have delayed key models.

Earlier this month VW Group CEO Oliver Blume singled out Audi’s slow progress on innovation as a key area of concern.

"Audi slipped a bit in terms product promises and product concept compared to Mercedes or BMW," said Philippe Houchois, global auto analyst at Jefferies. "Audi’s lineup had aged, and Duesmann was under pressure for some time."

In Doellner, Audi is tapping a former Porsche executive who has worked alongside Blume across a 30-year career at VW.

Doellner, who has a degree in mechanical engineering, joined VW Group as a doctoral student in 1993 and rose through the ranks to become head of product development at Porsche.

He was in charge of the Porsche Panamera series from 2011 to 2018 and became VW Group's head of product strategy in 2021.

Reuters and Bloomberg contributed to this report