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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.

Odds are on Bentley Mulsanne replacement to be a flagship SUV

Volkswagen Group brand Porsche sells SUVs so that it can afford to pour money into its segment-defining sports cars. For fellow VW Group brand Bentley, that math doesn't work; Porsche sold around 280,000 cars last year, more than 190,000 of them the Cayenne and Macan, compared to Bentley's total sales of 11,006. The English maker, recently recovered from trying times, must therefore be especially choosy about apportioning resources when deciding what to build. When the company looked at the prospects for the Mulsanne, Bentley realized that developing a four-door sedan replacement wouldn't pay off, so designers fashioned the new Flying Spur into a kind of Mulsanne Lite. If a new model from Crewe ascends into the $300K-plus arena, odds are it will be a crossover. In comments to various outlets over the past few weeks, including Top Gear, Car, and Car and Driver, Bentley CEO Adrian Hallmark didn't explicitly admit the arrival of a big-money crossover. However, he said almost everything one could say without admitting it. His comments were previewed last year by those of Werner Tietz, the Bentley board member for engineering. On the subject of updating the automaker's lineup, Tietz told Autocar Bentley's goal is to sell to new customers, and for that, "There is some potential when you look at SUVs too, especially around a car larger than the Bentayga if you consider its value to the Chinese and American markets. So, yes, that is one opportunity we are exploring." Five years ago, talk about a Bentayga variant centered on a sleeker coupe style, not something bigger and badder, but much has happened since then. Hallmark explained that the market for mid-six-figure big sedans has dropped to 1,000 sales worldwide, chopped up between the Mulsanne and Rolls-Royce Phantom. Roughly 90% of Mulsanne sales are to under-40s in China and over-60s in the U.S. While "it's a great business ... it's a shrinking business" because aging Mulsanne buyers in the U.S. don't want to drop another half million dollars on a daily driver, opting for a Flying Spur or Bentayga instead. As for the Chinese market, the CEO confessed to Car, "[If] we did a — not to give you the answer — if we did a longer wheelbase Bentayga, every single one of those Mulsanne customers in ChinaÂ… would take that instead."  The Bentayga soaks up almost half of Bentley sales.

Bentley EXP 9 F to be redesigned, renamed Falcon?

In concept form, the Bentley EXP 9 F had neither the styling nor the name to impress us when we first saw it earlier this year at the Geneva Motor Show, and while we already knew some sort of design change was imminent, we're unsurprisingly now hearing that a name change is also in the cards. Automobile Magazine is reporting that the eventual production Bentley SUV will get a complete redesign from what we saw in the EXP 9 F, and it will wear a new name as well: Falcon.
The article says that Luc Donckerwolke, Bentley's newly appointed director of design, is giving the SUV a complete redesign from the concept vehicle, which goes against what we last heard of the vehicle in August that a "radical redesign" was not in the cards. Donckerwolke has been on the design team at various Volkswagen Group automakers since 1992, helping to pen such memorable designs as the Lamborghini Gallardo and Murciélago, but now he is tasked with giving Bentley an SUV worthy of its lineup. Last we heard, the model could go into production in 2015, but there is no indication whether the Falcon will get three-row seating or a plug-in hybrid version as has been previously rumored.