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VW Group to split brands under four holding companies

The Volkswagen Group is planning a tremendous shift in its internal structure that will decentralize operations by splitting its 12 brands into four different holding companies. Here's the breakdown. Things will be split logically, considering the inter-sharing of parts, platforms, and engines. The Volkswagen brand, Seat, and Skoda make up a passenger vehicle division led by former BMW man Herbert Diess. Audi, which is tightly intertwined with Lamborghini and motorcycle manufacturer Ducati, will be managed by current Audi exec Rupert Stadler. Porsche and Bentley, which are already quite close, will be joined by Bugatti and run by Matthias Mueller. Finally, a commercial vehicles division will include Volkswagen Commercial, Scania, and Man. Former Daimler exec Andreas Renschler will take care of the big vehicles. The massive move, according to Automotive News Europe, is part of an internal VAG effort to move away from the structure established by ousted Chairman Ferdinand Piech, who favored a compact, but highly centralized, management structure to oversee the independent actions of the company's brands. Criticism of Piech's arrangement stemmed from the company's slow responses to changes in the market, ANE reports. The new structure should make for a more efficient, streamlined company that's better able to make crucial decisions. What are your thoughts? Should VAG decentralize, or did Piech have the right idea? Have your say in Comments.

VW sales increase 0.6% in September despite diesel scandal

Volkswagen was spared in the month of September from posting a sales disaster, but in reality, the impending doom and gloom is likely just postponed until October. According to VW, it delivered 26,141 vehicles to its dealerships last month, which represents a 0.6-percent gain over the same period a year ago. While up, that meager increase represents the smallest uptick of all major brands in the United States, which is currently in the middle of the best vehicular sales year in the last decade. Audi, the German automaker's mainstream luxury unit, saw a bigger gain at 16.2 percent with 17,340 total units sold, thanks in large part to the popularity of its crossover models. These numbers can't totally be taken at face value, however. In 2014, Labor Day weekend was counted as part of August's sales figures; in 2015, that traditional car-buying holiday fell early in September and is therefore partly responsible for the huge increases from all brands doing business in the United States. Remember, the diesel emissions scandal didn't hit the news until September 18, which means VW was free to sell its 2.0-liter TDI engine for the majority of the month. In other words, October is going to be the real indicator of sales reckoning as it will be the first full month that the brand can't sell its popular diesel models and the first since its emissions scandal broke. Still, TDI sales were down last month. VW reports a total of 3,060 sales of vehicles equipped with TDI engines, which represents 11.7 percent of total volume. That's nearly cut in half from the TDI's year-to-date volume percentage of 20.4 percent. "We would like to thank dealers and customers for the support of the Volkswagen brand," said Mark McNabb, chief operating officer for Volkswagen of America in a statement. "Volkswagen will continue to work diligently to regain trust and confidence in our brand." It's not yet clear exactly when VW will issue a fix to make its 2.0-liter TDI engine emissions legal, or when the EPA will recertify those models for sale. Once those two things happen, dealers will again be free to sell vehicles equipped with the powertrain, but even then it remains to be seen how consumers react when the sales ban is lifted. Scroll down below for all the sales data from Volkswagen in September.

X1, 3 Series power BMW back into global luxury autos sales lead

BMW managed to eke ahead of Audi for the global luxury sales crown in February. According to Bloomberg, BMW saw deliveries swell by 7 percent in February, besting the 3.2 percent jump enjoyed by Audi and giving BMW a 407-unit delivery lead over its rival last month. Mercedes-Benz, meanwhile, continued to falter, with the brand selling some 37,229 fewer machines than BMW, whose factories are running at full capacity to keep up with demand. Models like the X1 (shown above) enjoyed a sales increase of 40 percent in February while the company's bread-and-butter 3 Series jumped by 26 percent.
Mercedes-Benz hopes to stem its continued market share loss with the addition of the entry-level CLA sedan to its portfolio in April. The company is set to roll out an updated version of its cash-cow E-Class at the same time, and a new-generation S-Class will follow along shortly thereafter. Meanwhile, the company is increasing production to meet demand for its A and B-Class models.