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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.

Mercedes may be working on a new electric car dubbed 'Ecoluxe'

Automobile has a lengthy piece this month on how the four German mass-market luxury manufacturers each plan to go after Tesla with their own electric vehicles. It was written by Georg Kacher, the magazine's European bureau chief, and the English version came a month after he wrote the German-language original for Autobild. Tesla isn't exactly a threat to the Germans, but, according to the report, the Model S is planting the right kinds of seeds in niches that are important to the luxury players. The thinking is that - in addition to needed electric vehicles anyway for stricter US regulations - it's better to start designing the machinery now. The article posited Porsche's attack would rest on the coming Panamera platform, but a big hurdle would be battery placement. Unable to find one large space for a lithium-ion pack, engineers would instead put batteries everywhere they could, for a supposed tally of some "108 battery pouches" throughout the body. A few days after the Automobile piece, however, Porsche publicly said it had no intention of challenging the Model S, because the enthusiastic driving the brand is known for doesn't jive with useful range. In Kacher's retelling, Mercedes' plans are even more ambitious, supposedly taking aim at the Model S and the coming Model X. It would do this with an investment in excess of $2 billion in a program called "Ecoluxe" – Mercedes has no brand division akin to BMW's i and Audi's e-tron. The new brand would create a four-strong family of bespoke electric vehicles: a smaller platform with a wheelbase around 106 inches and a larger one with a wheelbase around 118 inches. In addition, the range would have "provisions for rear-wheel drive, all-wheel drive, and rear-wheel steering." The numbers are impressive: seating for seven in the larger vehicles, both longer than 16 feet, front and rear storage areas, ratings of up to 610 horsepower and production capacity of 80,000 units per year. When would we see such creatures? Perhaps as soon as 2019. We do know that if Tesla can knock the Model X over the outfield fence, automakers are going to have to do something. We don't know what the chances are that Ecoluxe is Mercedes' first move - but such a plan could help explain the weird Mercedes concept spied in October.

Audi Q3 recalled for wanting to stay dry

Volkswagen of America has announced a recall of the 2015 Audi Q3 because in one instance the car might not stop what it's doing even when you turn it off. If you shut down the car while the sunroof is closing, the sunroof could keep on closing. That possibility contravenes federal standards concerning roof panel systems and affects up to 3,646 examples of the Q3 manufactured between April 4, 2014 and November 5, 2014. Customers are asked to bring their Q3s to their Audi dealers, where the sunroof control module will be updated free of charge. You'll find a bit more information in the bulletin from the National Highway Traffic Safety Administration below. Related Video: Report Receipt Date: APR 03, 2015NHTSA Campaign Number: 15V200000Component(s): VISIBILITYPotential Number of Units Affected: 3,646Vehicle Make Model Model Year(s): AUDI Q3 2015Manufacturer: Volkswagen Group of America, Inc.SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Audi Q3 vehicles manufactured April 4, 2014, to November 5, 2014. If the vehicle is turned off while the sunroof is closing, the sunroof may continue to close instead of stopping. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) 118, "Power-Operated Window, Partition, and Roof Panel Systems."CONSEQUENCE: If the sunroof is closing while the vehicle is shut off and a vehicle occupant is in its path, there is an increased risk of injury.REMEDY: Audi will notify owners, and dealers will update the sunroof control module software, free of charge. The recall began on April 13, 2015. Owners may contact Audi customer service at 1-800-253-2834 FREE. Volkswagen's number for this recall is 60C1.NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 FREE (TTY 1-800-424-9153 FREE), or go to www.safercar.gov.