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Skoda unveils Volkswagen Up!-based Citigo

This is the all-new Skoda Citigo, and if you're thinking that it looks rather familiar, that's because its Volkswagen-badged kin recently debuted at the 2011 Frankfurt Motor Show. That's right, the long-rumored Skoda version of Volkswagen's new Up! city car has finally arrived.
Buyers will have a choice of two 1.0-liter three-cylinder engines - one with 59 horsepower, the other with a 74 hp and a blistering 106 mph top speed - both mated to a five-speed manual transmission. Powerful they are not, but these three-bangers should prove to be extremely efficient, with Skoda quoting fuel economy numbers of 62.8 and 60.1 miles per gallon, respectively (on the European cycle).
Being a Skoda, the Citigo will go on sale in its home market of the Czech Republic this fall, with the rest of Europe getting the car next summer. Follow the jump for Skoda's official release.

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.

CEO says Volkswagen's buying spree is over

After adding Italian motorcycle icon Ducati to its stable and spending $5.6 billion on the rest of Porsche, Volkswagen CEO Martin Winterkorn says he's done shopping for a while.
"We have enough to do at the moment in taking our twelve brands to where we want to be," Winterkorn tells German newspaper Handelsblatt.