Capito joins Volkswagen from Ford, where he was the director of global performance vehicles and motorsport business development.
His exit from Ford was confirmed in March.
Capito, 53, was officially welcomed on Wednesday and introduced to the staff.
"I'm very much looking forward to working together with this strong team and have a lot of respect for the successes that have been achieved so far," said Capito. "My first impression is that the squad is working with great enthusiasm and operates in a likeable and friendly atmosphere.
"Big and interesting tasks are awaiting all of us and we will tackle them with high motivation. My thanks also go to Kris Nissen, who has done very good preparatory work and who will continue to play a part in this endeavour in order to assure a harmonious handover."
From 2013, Volkswagen will be competing in the World Rally Championship with the Polo R WRC.