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, has led Audi, VW’s cash cow alongside Porsche, since 2021. During the former BMW executive’s tenure, Audi partly helmed VW’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.
Doellner holds a degree in mechanical engineering. He joined VW Group in 1993 and subsequently served in a number of management roles at VW’s Porsche division, including head of concept development and head of the Panamera series.
“I’m honored and excited to be taking on this new role. Audi is a fantastic company with a rich history,” Doellner said. “I look forward to shaping the company’s future together with the entire team at Audi.”
Reuters and Bloomberg contributed to this report