Volkswagen announced a simplified structure at the top of its Brand Group Core. The automaker will now have one management team overseeing multiple commercial brands for the group.
For context: The move is expected to save about $1.2 billion ($1 billion euros) by 2030, according to a statement from the company.
Volkswagen has already begun the restructuring process and expects to complete it by July.
The new top governing board will oversee Volkswagen Passenger Cars, Škoda, SEAT&CUPRA and Volkswagen Commercial Vehicles.
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Nuts and bolts: The reorganization aims to streamline processes, decision-making paths and structures, Volkswagen said.
Looking ahead, the Škoda, SEAT&CUPRA and Volkswagen Commercial Vehicles Boards of Management will each keep four positions: CEO, board member for finance, board member for human resources and board member for sales.
Starting this month, “the production (P), technical development (TE) and procurement (P) functions in the Brand Group Core will gradually be managed across brands.”
The internal restructuring eliminates about one-third of board/management positions across those brands.
Worth noting: Volkswagen on Wednesday reported better-than-expected net cash flow in 2025 of $7 billion.
What they’re saying: “The new governance reduces costs and structures – while at the same time increasing our efficiency level,” Thomas Schäfer, head of the new group and CEO for Volkswagen Passenger Cars, said in a statement. “This reorganization is a significant step for the future viability of the Brand Group Core.”
Bottom line: Time will tell if the moves help speed up product rollouts and how and if incentives may be affected. The new moves could eventually mean dealers will need to revamp sales efforts based on what the new group sends to the U.S.
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