Volkswagen is streamlining the management structure of its volume brands to reduce costs. The number of board members in the “Core” brand group, which, in addition to the core VW brand, also includes Skoda, Seat/Cupra and VW Commercial Vehicles, is expected to fall by around a third by the summer. The Wolfsburg-based DAX group announced this on Wednesday
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The aim is to streamline administration, speed up decisions and increase competitiveness. The VW Group board member responsible for the group, Thomas Schäfer (55) expects savings of one billion euros in production alone by 2030.
According to a report in “Automobilwoche”, the number of board positions will drop by ten to 19. According to VW, the management of the brands will in future consist of four executives: In addition to the brand boss, there are also the finance, human resources and sales departments. A new “brand group board” will make central decisions in the fields of production, development and procurement. The group’s more than 20 plants worldwide will be grouped into five regions to eliminate duplication of functions.
According to Volkswagen, the tighter management structures are a contribution to the austerity course that Europe’s largest car company has adopted due to the crisis in the industry. The core brand has been cutting jobs in a socially responsible manner for about a year, and a total of 35,000 jobs are expected to be eliminated in Germany by 2030.