Reports: Volkswagen to pick Porsche's Matthias Muller as new CEO

Matthias Muller

Volkswagen has chosen Porsche's Matthias Muller as the company's new CEO, The Wall Street Journal and Bloomberg reported Thursday.

Muller, 62, will reportedly replace Martin Winterkorn, who stepped down Wednesday as VW chief after a global emissions scandal devastated the company and cut the market value of the world's biggest car company by nearly a third.

Winterkorn is leaving Volkswagen with a severance package worth more than $65 million. Bloomberg News reports that Winterkorn amassed a $32 million pension before stepping down Wednesday, and he may reap millions more in payoff depending on how his exit is classified by the board. The Wall Street Journal estimates the total package could exceed $65 million.

photo Matthias Muller

Winterkorn, VW's top boss since 2007 and architect of Volkswagen's American growth strategy that brought VW to Chattanooga, came under intense pressure since the disclosure that stealth software makes VW's 2009-2015 model cars powered by 2.0-liter