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Volkswagen Group could be divided into four holding companies

Snapshot: A spicy rumor from German media indicates Volkswagen Group is planning a major restructuring process.

According to sources within VAG cited by Handelsblatt, the massive automotive conglomerate wants to cut costs by overhauling the corporate architecture by adopting a decentralized layout that will consist of four holding companies. Interestingly, it is believed one of these new holdings will be led by Herbert Diess who used to be a BMW manager in the past.

Based on this preliminary report, the first holding will include the Volkswagen core brand along with SEAT and Skoda, with this one being rumored to be led by Diess. The second one will join together Audi with Lamborghini and motorcycle manufacturer Ducati and this will be led by current Audi CEO Rupert Stadler.

The third one is believed to include Porsche, Bugatti and Bentley and led by current Porsche boss Matthias Mueller. As for the fourth and final holding company, this will join Volkswagen Commercial Vehicles with Scania and MAN and the man in charge is going to be ex Daimler trucks boss Andreas Renschler.

This decision has apparently been taken after Volkswagen chairman Ferdinand Piech left the company, a man who wanted to have a highly centralized compact management structure in charge of overseeing the independent actions of all the brands within VAG. With this new structure, the Volkswagen Group aims to become more efficient and act quickly to market changes.

Volkswagen is still analyzing the prospects of whether they will still need separate group-level executives for production, sales and the Chinese market. As a consequence, it is not known at this point what will happen to the company’s sales and marketing boss Christoph Klingler as well as with Volkswagen China’s chief Jochem Heizmann. It should be mentioned the position of group production chief has been vacant since August 2014 when Michael Macht called it quits.

As a final note, this is only a report at this moment as nobody from the Volkswagen Group has denied or confirmed the news.

Source: Handelsblatt

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