VW to split brands into 4 holding companies – report

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As Automotive News Europe understands, the Volkswagen Group is planning a major restructuring of its corporate layout to feature a decentralised system with four holding companies managing the group’s 12 brands. Although VW has yet to issue an official statement regarding the move, German daily, Handelsblatt, along with Reuters and Bloomberg have confirmed Volkswagen’s plans.

The 12 brands will be segmented based on parts, platforms and engines shared to make things more clear cut. As such, Volkswagen Passenger Cars, Seat and Skoda will form a passenger vehicle arm headed by former BMW exec, Herbert Diess. Current Audi chief, Rupert Stadler, will take charge of a new division comprised of Audi itself, Lamborghini and Ducati.

Meanwhile, Porsche CEO, Matthias Mueller, is expected to command a new division made up of Bentley, Bugatti and Porsche. Finally, Volkswagen Commercial Vehicles, Scania and MAN Truck and Bus will form a commercial vehicles division, led by former Daimler exec, Andreas Renschler.

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Also, reports are indicating that Volkswagen Group is mulling over the need for separate group-level executives for sales, production and the Chinese market. Such a notion has led to doubts over the position of sales and marketing chief, Christoph Klingler, and Volkswagen’s China head, Jochem Heizmann.

Such a move can be seen as a measure taken against former VW Group chief, Ferdinand Piech, who favoured more centralised structure. Piech was also fond of granting each brand more autonomy within the Volkswagen Group to maximise competition between them. As a result, industry analysts have noted that such a system has prevented Volkswagen from reacting quickly to shifting market trends.

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Gregory Sze

An “actor” by training, Gregory Sze realised that he has had enough of drama in his life. Following his number one passion (acting was actually number two), he decided to make the jump into the realm of automotive journalism. He appreciates the simple things in life – a simple car with nothing but back-to-basics mechanical engineering and minimal electronics on board.

 

Comments

  • Areyousure on Jun 16, 2015 at 11:21 am

    Let’s get the brand bashing party begins, lolx

    Like or Dislike: Thumb up 10 Thumb down 2
  • Sam Loo (ori1) on Jun 16, 2015 at 11:27 am

    Does this mean the DSG problems will be split to 4 parts? that is worse. It is like bacteria or virus multiplying. Now, there will be 4X more DSG complaints.

    Remember, DSG problems still not sorted out and VGM are still selling Malayians lemons.

    Like or Dislike: Thumb up 5 Thumb down 22
    • baharudin on Jun 17, 2015 at 4:10 pm

      it’s been a years all dsg issue had been resolved by vgm. u can call them or better go to their office ask for yourself. keh keh keh

      Like or Dislike: Thumb up 1 Thumb down 0
    • Arone Box on Jun 18, 2015 at 3:14 pm

      Some of u who just talk about dsgs and all , u gotta know for every 10 dsg issue, there are other hundreds of happy owners. Whatever VW topic comes up, keyboard warriors will come out straight with their dsg this , dsg that. Time to get a life!!!

      Like or Dislike: Thumb up 2 Thumb down 0
  • Areyousure on Jun 17, 2015 at 9:06 am

    And do whatever restructuring you want, VW will never be no.1 car in the world, that title is firmly belong to Toyota.

    Like or Dislike: Thumb up 0 Thumb down 6
  • there is no best but better Volkswagen beat toyota in many aspects. Safety, performance and handling.

    Like or Dislike: Thumb up 3 Thumb down 0
 

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