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Is Larger Than Life Volkswagen Group Splintering Apart?

The Volkswagen Group is a larger than life entity with over a dozen brands under its hood. But is being the parent company to so many underlings a challenge in terms of management and momentum? Word is circulating that the unshakable VW Group could be splintering off into 4 sections to better handle the load and road ahead.

Volkswagen Group

Handelsblatt news publication of Germany has cited company sources stating that Volkswagen Group could be breaking apart into 4 separate holding companies.

The proposed 4 separate holding companies that would form the new Volkswagen Group could break down as follows:

  • A holding company responsible for mainstream brands, Skoda and Seat, led by former BMW executive Herbert Diess.
  • Audi and its subsidiaries and underlings (Lamborghini, etc.)
  • Porsche, Bugatti, Bentley and other ultra-luxe brands
  • The 4th would be a VW Commercial Vehicles unit including Scania and MAN

It is fascinating to hear of such an enormous automotive entity possibly breaking apart, or “reorganizing”. The plan is said to be a slice of CEO Martin Winterkorn’s agenda for future strength. Would 4 separate segments of VW Group be stronger than just a single corporate giant? Think of it in automotive performance terms—all 4 wheels hold a specified amount of power and weight to drive a vehicle, couldn’t the same strategy apply to a business? Overall, it seems that so long as each unit is designed to function seamlessly with the others, it could just provide the perfect amount of traction to take on any market conditions the future has in store.

Volkswagen Group

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