This will be the new boss, the group introduces brand groups: Volkswagen decides the biggest change in history

04/12/2018

This is going to be a new boss, the Group is introducing brand groups Volkswagen is deciding on the biggest change in its history

DPA

Volkswagen headquarters Wolfsburg

The Volkswagen Group is facing the biggest change in its history. At its meeting on Thursday, the Supervisory Board elected Herbert Diess as successor to Matthias Müller as CEO and decided to reorganize the group into brand groups.

Suddenly, everything went very fast: the supervisors of the Volkswagen Group made sweeping decisions on Thursday at their meeting. In the future, the brands of the largest car manufacturer in the world will be divided into three groups: “Volumes” with the brands Volkswagen, Skoda and Seat; Premium with Audi and “Super Premium” with Porsche, Bugatti, Lamborghini, Bentley.

picture alliance / dpa

Herbert Diess (left) replaces Matthias Müller at the helm of the Volkswagen Group. Müller leaves the company with immediate effect.

In the future, the Group will be managed by Herbert Diess, and former Chief Executive Officer Matthias Müller will leave the company with immediate effect. This continues to be the head of Volkswagen’s most important brand and is also responsible for development and vehicle IT.

DPA

Gunnar Kilian could become the new Chief Human Resources Officer

The new hiring manager and successor to Karlheinz Blessing will be Gunnar Kilian, previously Secretary General of the Group Works Council and close confidant of Works Council Director Bernd Osterloh.

The billion-dollar truck business will also be given a new set-up: The “Truck & Bus” unit is to be made ready for the stock market following a resolution by the Supervisory Board.

The reason for the major reorganization is the dissatisfaction of the supervisory boards and major shareholders with the speed of the reforms under Müller. According to information from manager-magazin.de, the CEO, who has been in office since autumn 2015 and retired on Thursday, was accused of lacking in decision-making.

Not only a new CEO and a new personnel manager are appointed. The conversion also meets purchasing manager Francisco Javier Garcia Sanz.

REUTERS

Francisco Javier Garcia Sanz

Although Sanz was successful in the negotiations with the US authorities in connection with the exhaust gas scandal show. But he is also responsible for the massive problems with the supplier Prevent. In 2016, production in some VW plants had almost come to a standstill because Sanz could not reach an agreement with Prevent – or had allowed too much dependence on the one supplier.

Negatively, the responsible person should also be reminded of his comparatively generous use of the company’s own flying readiness. At the end of last year, Sanz had repaid just under € 950,000 to the Group after Supervisory Board Chairman Ferdinand Piëch declared the travel bills inadmissible.

Sanz leaves the company and is temporarily replaced by Ralf Brandstätter, currently purchasing director of the VW brand.

REUTERS

Oliver flower

Porsche CEO Oliver Blume is joining the Board of Management and will also be responsible for Group production in the future. Audi CEO Rupert Stadler will also be responsible for sales, as well as for his brand.

The world’s largest car company had announced on Tuesday, surprisingly, to reorganize the management structure.

The advantage of smaller units: They are clearer and, if necessary, easier to market. For some time now, there has been a separate spin-off of the truck business with its own IPO or a holding structure in the debate.

Also read: Herbert Diess has these visions for the VW Group

Volkswagen had completed the last radical reconstruction in 2012. At that time, among other things, the Group had deepened the alliance of its commercial vehicle businesses, expanded its activities in China and recruited dozens of management positions – at VW itself, Audi, light commercial vehicles, Bentley and other areas.

Also read: How the Works Council Volkswagen co-governs

Also “Dieselgate” then increased the pressure to save costs. In 2015, a separation of Group and brand functions was initiated. The responsibility of the sales regions was also strengthened. So VW created its own market region North America, where the core brand drove behind the competition for a long time. Later Müller called out the “Strategy 2025” – one goal was the dismantling of centralism in the VW Reich. “It is now also possible to delegate things,” he said in 2016.

with news agencies

To home page