Volkswagen Plans Management Reschuffle At Porsche

Germany's Volkswagen AG (VOW.XE) is planning a management reshuffle at Porsche AG, in which Volkswagen production strategy chief Matthias Mueller will become head of Porsche AG, Porsche said Tuesday -a move set to tighten Volkswagen's grip on the German sports car maker it half-owns.

Porsche AG is the sportscar operation of Porsche Automobil Holding SE (PAH3.XE).

Michael Macht, Porsche AG's current chief, will take over Jochem Heizmann's position as head of Volkswagen production. Heizmann is set to coordinate a new "Group Trucks" subsidiary, effective Oct. 1, Volkswagen said.

Mueller, who is a close confidant of Volkswagen CEO Martin Winterkorn, knows about the product plans at Volkswagen and Audi AG (NSU.XE), which will benefit the integration process of Porsche into Volkswagen.

Winterkorn is pushing for the construction of smaller Porsche cars ..... But Porsche fears that could damage the brand.

Porsche is set to be integrated as the tenth brand of the Volkswagen group as of 2011.

Macht had taken over the management of Porsche AG after former CEO Wendelin Wiedeking left one year ago.

Volkswagen in December acquired a 49.9% stake in Porsche's core sports car operations through a capital increase as part of a complex merger, which is expected to be finalized in 2011.

-By Katharina Becker, Dow Jones Newswires; [phone]; [e-mail]