Volkswagen is changing gears in the United States. Its chief executive will head the automaker's new Scout company, and his replacement will come from South America.
Volkswagen Group of America CEO Scott Keogh, who has overseen the Chattanooga plant's expansion to soon produce an electric SUV, is moving to the newly created post of president and CEO of VW's recently established Scout, officials said Tuesday.
Scout will launch all-electric pickups and rugged SUVs in the U.S. market, according to VW.
Pablo Di Si, executive chairman of Volkswagen's South American Region, will take Keogh's former position as president and CEO of Volkswagen Group of America and chief of Volkswagen's North American Region, according to the company that employs more than 4,000 people at its Chattanooga assembly plant.
The company said the leadership changes are designed to accelerate Volkswagen Group's global growth strategy in America with a portfolio of more than 25 electric vehicle models by 2030.
Herbert Diess, CEO of Volkswagen Group, said in a statement that the two executives have played key roles in turning around the businesses in North America and South America, respectively.
"In their future positions, they will be pivotal in seizing the historic market opportunities in the U.S., taking our growth strategy in the region to the next level," he said.
The leadership changes will take effect Sept. 1, the company said.
Volkswagen will soon start assembly of its all-electric ID.4 SUV in Chattanooga, aimed to help meet high customer demand in the market. In addition, the group will build up dedicated electric vehicle capabilities in engineering, research and development, assembly, components production and supplier partnerships, according to VW.
Jesse Toprak, chief analyst for the electric vehicle subscription company Autonomy, said the ID.4 is crucial to VW's plans to grow its market share in the U.S. He said VW wants to about double its share to 10%.
The ID.4, which is now imported from Germany but will be built in Chattanooga sometime in the summer-fall period, comes at the "right time, right design and right price," Toprak said in a telephone interview.
"It hits the sweet spot for decent range, a good design and is enough space for a family," he said.
Keogh has led a return to profitability in America for the first time in years, helping dealers realize substantial profit growth while navigating COVID-19 and supply chain challenges, Volkswagen said. He also has driven the group's electric vehicle push and has been instrumental in bringing the ID.4 and Audi e-tron to North America and, soon, the ID.Buzz, said the company.
Volkswagen Chattanooga is hiring 1,000 more workers to produce the ID.4 and its existing Atlas and Atlas Cross Sport SUVs. VW has invested $800 million in the plant the past few years to ready it for electric vehicle production.
Meanwhile, Di Si has led the company's return to profitability in the Latin America market, promoting the most significant launch of new products in its history and tailored to the region's needs, according to VW. He also led a restructuring focused on cultural transformation, creating new business models, accelerating digitalization and improving client satisfaction, the company said.
Keogh was appointed president and CEO of Volkswagen Group of America and head of the Volkswagen brand in North America in 2018.
He began his career in 1995 as general manager of marketing communications for Mercedes-Benz USA. Keogh joined the Volkswagen Group in 2006 as chief marketing officer at Audi of America Inc. In 2012, he assumed the role of president and CEO at Audi of America. He holds a bachelor's degree from Hobart and William Smith Colleges.
Di Si began his career at Volkswagen Group in 2014 as president and CEO at Volkswagen Argentina and took over the position of president and CEO of Volkswagen Brazil and Latin America in 2017. Recently, he was appointed executive chairman of Volkswagen South American Region.
Previously, he held key positions in finance and business development both in the U.S. and in Brazil with the Fiat Chrysler Group, Kimberly-Clark and Monsanto. A graduate of Harvard Business School, he holds a Master of Business Administration in international management from the Thunderbird School of Management and a degree in accounting from Northwestern University. He also earned a degree in business administration with a major in finance at the Loyola University of Chicago.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.