Volkswagen's new CEO Matthias Mueller believes that the German car manufacturer can rise back into popularity again in the next two to three years.

Volkswagen have recently announced that they will be recalling 8.5 million vehicles in Europe as a result of the emissions scandal, any vehicle that has been fitted with the 'defeat-device'.

Mueller took over as chief executive last month when the previous chief executive Martin Winterkorn stepped down as a result of the discovered emissions tests cheating.

In a speech to company managers, Mueller stated that the company needs to become leaner and to make decisions more rapidly if they are to bounce back from  the 'emissionsgate' scandal.

The new chief executive said, "We will significantly streamline structures, processes and (decision-making) bodies. We must become leaner and take decisions more rapidly."

"Our competitors are only waiting for us to fall behind on technology matters because we are so preoccupied with ourselves. But we won't let that happen."

Also the man who was pegged to become VW's North America boss, Winfried Vahland has resigned.

Volkswagen issued a statement and said that Vahland was leaving because of, "differing views on the organisation of the new group region".