Trade Resources Company News Volkswagen to undergo a restructuring process

Volkswagen to undergo a restructuring process

German automobile major Volkswagen (VW) is set to undergo a restructuring process that will ultimately end up splitting the firm into four holding companies for managing its 12 brands.

In what has been dubbed as decentralization of control, the resulting structure is expected to improve efficiency and expedite the process of decision-making, an Automotive News Europe report said quoting a daily Handelsblatt.

While every group will be free to decide about the models and the markets in which they will pitch their products, the head of each firm will find their representation on the management board.

The rejig has been necessitated by the high costs borne by the company in its core business and the initiative is aimed at reforming the existing structure.

Former BMW manager Herbert Diess will be at the helm of the holding company entrusted with managing VW, Skoda and Seat passenger car brands.

Another holding firm, which would be spearheaded by Audi CEO Rupert Stadler, will have Audi, Lamborghini and Ducati within its ambit.

Similarly, Porsche, Bentley and Bugatti would be brought under the umbrella of a unit under the stewardship of Porsche boss Matthias Mueller.

In yet another division, the Scania and MAN heavy truck brands will make their way to VW Commercial vehicles wing with former Daimler trucks boss Andreas Renschler taking the wheel.

The Volkswagen group has a staff headcount of 600,000 employees globally, spread across 119 factories.

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Volkswagen to Split Into Four Holding Firms
Topics: Auto Parts