A major restructuring is said to be on the way for the world’s second largest carmaker, the Volkswagen Group. According to three sources from within the company cited by Reuters, the automotive giant will be divided into four holding companies in a move aimed at boosting profits.
Apparently there will be one holding company for mass market car brands (VW, Skoda, Seat), one for trucks and commercial vehicles (MAN, Scania, VW Commercial Vehicles) and two for premium brands – one headed by Audi, which would also include Lamborghini and Ducati, and the other led by Porsche, which would include Bentley and Bugatti.
The sources said former BMW manager Herbert Diess may run the holding company for mass market brands when he takes office on July 1. The Audi division would be run by Rupert Stadler, while Porsche boss Matthias Muller would manage the other premium division. As for the trucks division, it is likely to be run by Andreas Renschler.
The first report about VW Group’s reshuffling came from Germany’s Handelsblatt newspaper, but VW declined to comment.
According to company sources, VW’s aim with the restructuring is to boost regional sales operations and make decision-making quicker. Each division would have the power to decide which models it sells and in which markets.
The VW Group’s overall sales fell for a second month in a row for the first time in more than five years in May.
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