The company said in a statement Thursday that it would group all its brands and management functions into six broad business areas plus China.
Thursday's supervisory board meeting is also expected to start preparations for a stock market listing of the trucks and bus division, sources have said.
Human resources chief Karlheinz Blessing is also set to go.
Oliver Blume, head of sports vehicle brand Porsche and newly appointed to the group executive board, will oversee production at the multi-brand organisation, VW said, confirming a Reuters report. The company did not detail the fifth and sixth business divisions ahead of a news conference scheduled for 10:30 a.m. (0930 GMT) Friday.
Volkswagen has chosen Herbert Diess as its new chief executive in an overhaul that includes streamlining the company's multiple auto brands into just three groups while preparing its truck business for a potential listing.
With about 642,000 employees, VW is one of the world's largest companies in every respect. It has promised more than 80 new electric and plug-in hybrid models by 2025.
Minnesota will use 20 percent of the money to help pay for cleaner school buses, 35 percent for cleaner heavy duty on-road vehicles like trucks, 15 percent for cleaner off-road heavy equipment, 15 percent for buying new heavy duty electric vehicles and 15 percent for new electric vehicle charging stations.
PCA officials said they received more than 1,000 public comments in recent months on how to spend Minnesota's share of the massive fines the German automaker had to pay after being caught cheating on air emissions controls on diesel cars.
"It's right for VW to look in a new direction", judged analyst Juergen Pieper of Metzler bank.
In 2016, a federal judge has approved a $15 billion settlement for claims following the emissions cheating controversy, making it the largest auto-scandal settlement in USA history.
Dieselgate has so far cost VW more than 25 billion euros ($31 billion) in buybacks, fines and compensation, and the carmaker remains mired in legal woes at home and overseas.
Diess, a former BMW executive, has had the hard task of negotiating restructuring and cost-cutting with German worker representatives since becoming head of the Volkswagen brand in 2015.
In addition to his job as CEO, Diess will directly oversee vehicle information technology as well as group development and research.
"Diess has no problem making enemies", the Sueddeutsche Zeitung daily wrote, recounting how the "tough-as-nails" executive drove a hard bargain with suppliers as head of purchasing at BMW.
Müller, as well as other current and former VW Group executives, may still be under investigation by German authorities for their roles in the scandal.