· Volkswagen will be reorganized into four major holding companies to use commercial luxury cars independently
According to the comprehensive foreign news report, the Volkswagen Group will reshuffle its business and 12 auto brands will be attributed to the four new holding companies. At the same time, the public high-level personnel will also change, the position of the group marketing president will be canceled. Strontium Chloride,Strontium Chloride Hexahydrate,Strontium Chloride Anhydrous,High Purity Strontium Chloride Shenzhou Jiaxin Chemical Co.,Ltd , https://www.jiaxinbaso4.com
According to information obtained by German media reports and Gasgoo.com, Volkswagen's structure will be reorganized and four new holding companies will be formed using the “Decentralized System†(Decentralized System). The aim is to improve business efficiency and boost sales and profit performance.
Volkswagen Group currently has 12 brands: Volkswagen Passenger Car, Skoda, Seat for ordinary passenger car brands; Audi, Porsche, Bentley for luxury / ultra-luxury brands; Lamborghini, Bugatti for ultra-luxury sports car brand; mass commercial Cars, Mann, and Scania are commercial vehicle brands; Ducati is a motorcycle brand. These 12 brands will also belong to the four holding companies.
· Holding company 1: Volkswagen passenger car, Skoda, Seat brand. He is headed by Volkswagen's passenger car brand CEO Herbert Diess, who previously served as an executive at the BMW Group.
· Holding company 2: Audi, Lamborghini, Ducati brand. Under the hands of current Audi CEO Rupert Stadler.
· Holding company 3: Porsche, Bentley, Bugatti brand. Presented by current Porsche CEO Matthias Mueller.
· Holding company 4: Volkswagen Commercial Vehicle, Mann, Scania brand. Head of Volkswagen Commercial Vehicles is headed by Andreas Renschler. The latter previously served as the head of the truck business at Daimler.
Under the new structure, high-level personnel will also change. The changes that are currently known include the removal of the position of Christian Klingler, a board member responsible for marketing and sales for the Volkswagen Group. Last week, some sources pointed out that Collin may not be in a position to protect the position. On the one hand, the sales performance of the public is unsatisfactory, and the profit margin is low. On the other hand, Collin has the relationship with the former chairman of the former chairman, Piech. close.
In April of this year, Ferdinand Piech, the then Chairman of the Board of Supervisory Board (the Chairman of the Board of Directors), and the CEO Wendeng broke out, and the former retired. At present, Volkswagen only arranges the former chairman of the IG Metall Metals Union, Berthold Huber, as the interim chairman. In the end, the new chairman will be taken over, and it is expected to be settled in the process of corporate restructuring, which is also the focus of the industry.
Why restructure?
At present, the Volkswagen Group has encountered many challenges in the world and is trying to boost sales performance in some markets, while reducing expenses and reducing costs.
A large number of factories have been established in the core area of ​​Volkswagen, and the total number of employees is also ranked first among car companies. As of the beginning of this year, the Volkswagen Group has established a total of 119 production plants for complete vehicles and parts, with a total of more than 600,000 employees, which brings high operating and manpower costs.
The Group's core brand, the Volkswagen passenger car brand, set a target of cutting spending by 5 billion euros ($5.6 billion) by 2017. Compared with Toyota's 9% profit margin, Volkswagen's operating margin is only 2%. The entire group's profit margin in the first quarter of this year was 6.3% in the wake of luxury cars such as Audi and Porsche. The Volkswagen brand plans to increase its profit margin to 6% by 2018, about three times the current level.
From the perspective of regional markets, Volkswagen has recently experienced a decline in China's largest single market and important profit sources. The sales of the entire group have fallen for the first time in five years, while the Volkswagen passenger car brand has been weak for several months. FAW-Volkswagen's Sagitar, The Magotan and other cars are particularly down. The United States continues to be the weakness of the mass brand. Although there have been some recent months of declines, the overall situation is still green.
Volkswagen will also face the same battle with Daimler, the leader in the commercial vehicle sector. In recent years, Volkswagen has managed to take full control of Scania and Mann's two commercial vehicle brands, aiming to integrate its commercial vehicle business and build the world's largest commercial vehicle alliance.
What is after the division?
From the research of Gasgoo and the analysis organization, the intention of the Volkswagen Group to adopt the new architecture is to improve efficiency and increase the rate of decision making.
As mentioned above, Volkswagen has 12 brands, 600,000 employees, and more than 300 models. Obviously, the problem of “the big tail cannot be lost†is difficult to avoid; even some observers directly pointed out that the Volkswagen Group is difficult to control and it is difficult to quickly change the market. Response and state of affairs control. The new structure will overturn the strategy of former chairman Pierhe - giving each brand autonomy and maximizing competition among each other.
The four holding companies will each be an independent business segment, which can decide which models to sell and which markets to conduct.
Analysts at Evercore ISI said that the popular brand companies consisting of Volkswagen, Skoda and Seat will be the giants with an annual sales volume of 7.6 million units, with a total operating income of 119.2 billion euros and an operating profit margin of 2.7%.
The public did not comment on the above report.