VW’s CEO knows the future is electric—his çompany isn’t so sure.

WOLFSBURG, Germany—Matthias Müller was appointed as chief executive of Volkswagen AG, the world’s No. 1 auto maker, to clean up after its emissions scandal and drag it into the modern world of electric and self-driving cars.

He has been buffeted by a formidable counterforce—VW’s own managers, many of whom still yearn for the old autocratic corporate culture and remain skeptical of moves to downgrade the business of cars powered by…