Volkswagen is expected to announce the departure next month of Franz-Josef Paefgen, the Audi chief executive amid criticism of his strategy for the premium brand by VW chairman Ferdinand Piech, the FT reports today.

Last month Audi reported a 10.7% rise in sales and 12% increase in pre-tax profits to 700m euros (£435m)for the first nine months of the year.

However, it is understood Mr Paefgen will be replaced by Martin Winterkorn, head of product development at VW. The German carmaker has declined to comment. The prospective shake-up follows the appointment of Bernd Pischetsrieder, former chairman of BMW, as Mr Piech's successor. Mr Pischetsrieder is due to take over next April. (November 6, 2001)