Volkswagen Group to be split into four companies

In a strategy to deliver efficiency and enable focussed decision making, Volkswagen AG will be split into four groups, according to Chief Executive Officer Martin Winterkorn. The company currently owns 12 brands, has employee strength of approximately 6,00,000 people and facilities in 119 countries.

Volkswagen Passenger cars, Skoda and SEAT will form one group, which will be led by former BMW manager Herbert Diess starting July 2015.  Audi’s current CEO, Rupert Stadler will be in charge of Audi, Lamborghini and Ducati. Porsche, Bentley and Bugatti will form another unit, with Porsche chief Matthias Mueller at the helm. Ex-Daimler Trucks' boss, Andreas Renschler will head the commercial vehicles division, which includes Volkswagen Commercial Vehicles, Scania and MAN.

Each group will now be responsible for the models it manufactures and sells. Global and group head designations have been eliminated.  The heads of the four groups will now be a part of the VW AG board. Marketing, distribution and service support has been decentralised. The Volkswagen headquarters in Wolfsburg, Germany will be the command centre for all strategic decisions. This will also mean that Martin Winterkorn will now be playing a less influential role in VW affairs.