A new report coming from Germany indicates the Volkswagen Group is about to be restructured into four holdings. As a major to cut costs in management and other sections, VAG plans on modifying its structure and will be split in holdings, with the first one to include core brand Volkswagen along with Skoda and SEAT, with former BMW manager Herbert Diess to be in charge of these three brands.
The second holding company will reportedly include Audi, Lamborghini and Ducati while the boss will be Audi’s current CEO Rupert Stadler. As for the third one, it will apparently join Bugatti with Porsche and Bentley under the management of Porsche boss Matthias Muller. The fourth holding company is expected to encompass MAN, Scania and Volkswagen Commercial Vehicles which will be led by former Daimler Trucks chief Andreas Renschler.
This decision to revamp the Volkswagen Group probably won’t come as a surprise to many people now that chairman Ferdinand Piech has quit. He wanted a very centralized compact management structure and now the new bosses want to change this and group automakers to make the automotive conglomerate more efficient. They still haven’t made up their minds regarding the necessity of having group-level executives for production and sales as well as for the Chinese market.