Matthias Mueller has been named as the new CEO of Volkswagen amid revelations that the firm used equipment to rig emissions tests.
The Porsche director will succeed former boss Martin Winterkorn who stepped down on Wednesday, saying the company needed "a fresh start".
In a statement, Mueller said: "Under my leadership, Volkswagen will do all it can to develop and implement the strictest compliance and governance standards in the whole industry."
Volkswagen cars with smaller engines have also been affected by the emissions fixing scandal, the German Transport Minister has said.
Labelling the manipulation of data as "unacceptable" and "illegal", Alexander Dobrindt said vehicles with 1.2 litre engines may also have been involved in the fraud.
It was previously stated that the rigging had affected 1.6 and 2.0 litre engines.
Mr Dobrindt said around 2.8 million vehicles in Germany - including small trucks - were among the more than 10m worldwide estimated to have been fitted with the equipment.
It is still not known whether any cars sold in the UK are involved.
It comes as the company was due to hold a meeting to announce who will replace chief executive Martin Winterkorn, who stepped down amid the revelations that millions of cars were more pollutant than the firm had declared.
Porsche sports car chief Matthias Mueller has been tipped as his replacement.
Porsche sports car chief Matthias Mueller has been tipped to take over as chief executive of scandal-hit car-maker Volkswagen.
According to Reuters, citing a source close to the matter, Mr Mueller will succeed former boss Martin Winterkorn who stepped down on Wednesday amid revelations that the firm used equipment to rig emissions tests.
The German manufacturer's supervisory board meets today to formally announce the decision.
It has also vowed to 'name and shame' those responsible for the scam.
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Some owners of diesel VW cars in Britain are considering legal action following the emissions scandal that broke in the United States last week.
Bozena Michalowska Howells, a partner at law firm Leigh Day, said they had been "inundated" with inquiries from concerned motorists.
Diesel cars in the UK will have to retested for pollution emissions after Volkswagen admitted cheating the original tests.
11 million cars are affected worldwide and the Department of Transport has announced it will conduct its own investigation into the scandal.
ITV News Business Editor Joel Hills reports:
The government is to launch an investigation into vehicle emissions following the VW testing scandal in the United States.
Transport Secretary Patrick McLoughlin said in a statement:
The Government takes the unacceptable actions of VW extremely seriously.
My priority is to protect the public as we go through the process of investigating what went wrong and what we can do to stop it happening again in the future.
We have called on the EU to conduct a Europe wide investigation into whether there is evidence that cars here have been fitted with defeat devices.
The Vehicle Certification Agency, the UK regulator, is working with vehicle manufacturers to ensure that this issue is not industry wide.
As part of this work they will re-run laboratory tests where necessary and compare them against real world driving emissions.
The research and development chiefs of Audi and Porche will be dismissed, along with Volkswagen's top manager in the United States as the car-maker struggles in the wake of an emissions-fixing scam.
The manufacturer was found to have been manipulating emissions data in the US to make it appear as though some models were more environmentally friendly - with the German Transport Minister today revealing cars in Europe had been affected too.
A senior source at the firm said Audi research chief Ulrich Hackenberg, his counterpart at Porsche Wolfgang Hatz, and VW US chief executive Michael Horn would be dismissed at a meeting of the supervisory board tomorrow.
Volkswagen, Audi and Porsche have all declined to comment.
Volkswagen manipulated emission tests on cars in Europe as well as in the United States, the German Transport Minister has admitted.
Alexander Dobrindt said vehicles with 1.6 and 2.0 litre diesel engines had been affected by the "manipulations" of emissions data - though said it was unclear how many on the continent had been affected.
Random tests will now be carried out, he said, including on cars made my manufacturers other than Volkswagen.
Meanwhile, the scandal-hit firm is reportedly set to start naming and shaming those responsible on Friday.
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