Volkswagen USA CEO Replaced

FRANKFURT, July 5, 2005; Reuters reported that Volkswagen appointed its global head of marketing and sales to replace its head of U.S. operations, effective September, as the German carmaker looks set to post another loss in North America this year.

"In close deliberations with the management board, Stefan Jacoby will reposition the group's automobile business in the USA," Volkswagen said in a statement on Thursday, adding that the 49 year-old had plenty of experience working abroad.

Jacoby has been global head of marketing and sales since 2004.

Outgoing Volkswagen of America CEO Frank Witter will be moved to the group's financial services unit in North America, Volkswagen Credit, Inc., to become co-president.

Volkswagen narrowed its operating loss in North America to 607 million euros ($828.3 million) last year from 866 million in 2005.

It said in April that it was unlikely the group could break even in North America before 2009.