Volkswagen may be split into four different holding companies

Volkswagen may be split into four different holding companies according to news emerging from Germany. The move is a part of a massive decentralisation programme that the German automaker is going through in the wake of Ferdinand Piech being ousted from the helm of the conglomerate in April.

According to the new structure, there will be four holding companies under which each of the brands will slot into. The first company will comprise VW, Skoda and Seat which make up the group’s passenger car division. Audi, Lamborghini and Ducati which are essentially under the same umbrella will come together and be headed up by Rupert Stadler, the current boss of Audi. Porsche, Bentley and Bugatti will be run together by Matthias Mueller, the current boss of Porsche. Finally, MAN, Scania and VW commercial vehicles will be run together under the command of Andreas Renschler, a former executive with Daimler.

The move, in an obvious sense, is to move away from the compact centralised command structure that Piech favoured. It is believed that the steps in this direction will make the decision process more efficient and streamlined.

Source:Reuters