Split of Volkswagen Group

MANILA: No doubt, collaboration makes us better but at times split is also needed to bring out the best. Volkswagen AG, the German giant has made a lot of headlines as the brand prepares to completely overhaul its current structure wherein the four major holding companies will handle 3 brands each of the total 12 brands. It is claimed that this new restructured version will result into increased profits.

The report suggests that the VW brand manager, Herbert Diess will look after Volkswagen, Skoda, and Seat while Ducati, Audi, and Lamborghini will be headed by Rupert Stadler, Audi CEO. The current Porsche boss, Matthias Mueller will be handling Porsche, Bentley, and Bugatti whereas VW Commercial vehicles, Scania, and MAN will be under the leadership of Andreas Renschler, a board member of Volkswagen AG.

If the reports are true, then this restructuring would be the biggest change in the setup of this German firm. This will surely revolutionize the traditional centralized management structure which was set up by the former VW Chairman, Ferdinand Piech wherein his approach demanded the strings of the race in the hands of few sapient people. Now with this reconstitution, a lot of efficiency in terms of operation, implementation, cost reduction, and decision making can be expected where the individual brands have the freedom to operate with autonomy and to compete with one another.

With 119 factories worldwide and 6,00,000 employees working for it, how exactly this reorganization will look, can only be read in news after some time.