Volkswagen is replacing its top North American executive following a prolonged sales slump — roughly 14% across the group in the U.S. last year, with declines continuing into the first half of 2026 at around 7%. Marco Schubert, a veteran executive at the German automaker, will assume responsibility for the North American region on October 1, succeeding Kjell Gruner, who is leaving the company.

Gruner had come to Volkswagen in December 2024 following a tenure at electric-vehicle startup Rivian, meaning he held the North American role for under two years. Unlike Gruner, Schubert will report directly to Volkswagen Group Chief Executive Officer Oliver Blume, a structural change that signals the company’s intent to prioritize the region.

“We will intensify our commitment in the most important growth market for the Volkswagen Group,” Blume said in a statement.

Schubert brings more than 25 years of experience at Volkswagen across multiple markets and brands, including leadership roles at Audi in northern Europe and China, as well as responsibility for the Europe region at Porsche. Since September 2024, he has served on Audi’s board of management with responsibility for sales and marketing.

The appointment sets off a chain of executive moves across the group. Martin Sander, currently board member for sales, marketing, and after sales at the Volkswagen passenger car brand, will return to Audi to fill Schubert’s former role there. Martin Jahn, currently board member for sales and marketing at Škoda, will move to the Volkswagen brand to succeed Sander. Martina Biene will take over Jahn’s position at Škoda, and Christiane Zorn will move from Porsche to lead Volkswagen Group Africa. All changes take effect October 1, the company said.

The leadership shuffle is the latest in a series of moves Volkswagen has made to address persistent weakness in North America, where the group’s market share hovers around 4%, according to The Wall Street Journal. Because Volkswagen manufactures domestically only at its Chattanooga, Tennessee plant, the vast majority of cars it sells in the United States are imported, leaving the company particularly vulnerable to President Trump’s tariffs. Volkswagen has put the yearly toll of those tariffs on its business at the equivalent of $5.8 billion.

Volkswagen’s difficulties in North America come as the company faces pressure on multiple fronts. The group has been cutting its global model lineup and production capacity as it contends with rising costs, intensifying competition in China, and tariff-related headwinds. Blume is also advancing a restructuring plan that could eliminate up to 100,000 jobs in total, even as Volkswagen’s first-quarter 2026 net profit fell 28% year-on-year to €1.56 billion. In China, the group’s largest single market, sales have declined sharply as domestic competitors have eroded Volkswagen’s position.