You are using an older browser version. Please use a supported version for the best MSN experience.

Volkswagen Group to Split into Four Holding Companies

Motor Trend logo Motor Trend 6/16/2015 Megan Stewart

Company sources inside Volkswagen Group spoke with Handelsblatt, stating that the Group's entire corporate structure will be revamped and sectioned off into four holding companies, each representing a different direction of the company.

Research

Volkswagen has appointed former BMW manager Herbert Diess to run the first of the separate holding companies, which will include the Volkswagen, Skoda, and Seat passenger brands. According to Handelsblatt, the biggest reform will center around the high costs of the German factories that make up the Group's core business.

2015 Volkswagen Jetta© Provided by MotorTrend 2015 Volkswagen Jetta

The second holding company will consist of the upmarket brands, including Audi, Lamborghini, and Ducati, while a third will consist of MAN, Scania, and the Volkswagen commercial vehicles. The final holding company will feature Porsche, Bugatti, and Bentley. While the German publication cited company sources, a Volkswagen representative has yet to be reached to provide further comments on the restructuring.

The news comes months after VW Group Chairman Ferdinand Piech resigned from his post following a power struggle with Volkswagen Group CEO Martin Winterkorn. The new decentralized corporate structure will be a sharp contrast to Piech's structure where each brand essentially managed themselves and competed against each other. Winterkorn is reportedly pushing for the new structure, with the goal of maximizing efficiency and executing decisions more quickly. Rumors suggest Volkswagen Group will finalize plans by this fall.

Source: Reuters, Automotive News (Subscription required)

AdChoices
AdChoices

More from Motor Trend

Loading...

image beaconimage beaconimage beacon