Volkswagen Jetta CKD 15

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.