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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.

This classic VW bus packs Porsche power

Appearances can be deceiving. The rolling embodiments of that principal we call "sleeper cars": ordinary-looking vehicles that pack a much bigger punch than you'd get by just looking at them. Take this classic VW bus, for example. Sure, it may have some racing graphics and upgraded rolling stock to tell you this isn't just any old van, but looking at it, you'd still have no idea what lies beneath the surface. That's where you'll find oily bits sourced from Porsches. And not from a 914, either. (That was as much a Volkswagen as it was a Porsche anyway.) No, this vintage 1962 VW T1 "Bulli" van packs the air-cooled, forced-induction flat-six from a 993 Turbo, driving 530 horsepower and 558 pound-feet of torque through the six-speed manual transmission from a 996 GT3 to 18-inch BBS alloys. It's the obsessive six-year project of Swiss customizer Fred Bernhard, who also used carbon fiber to cut the curb weight down to 3,300 pounds. The resulting light sleeper can top out at 143 miles per hour, in a vehicle with the aerodynamic profile of, well, a bus. It's called the T1 Race Taxi and is being showcased by Volkswagen Commercial Vehicles at the GTI-Treffen at Worthersee this year. Short of maybe the Renault Espace F1 concept, we can hardly imagine any other van we'd rather drive around the Nordschleife. Or just to pick up the kids from school.

NA auto output to reach 11-year peak

According to Automotive News, automakers are expected to manufacture 16 million light vehicles in North America in 2013. That's up 500,000 units from last year and marks the largest number since 2002. The prediction comes courtesy of LMC Automotive and IHS Automotive, which point to the improving US economy as a bellwether for total production. LMC Automotive says North America will produce 16 million vehicles while IHS has a slightly more optimistic forecast of 16.1 million units. A total of seven automakers are slated to increase production on the continent this year. Nissan is set to see the largest jump at 20 percent over last year.
Volkswagen, meanwhile, is one of the only manufacturers predicted to scale back production. Analysts expect the German company's output to fall by 23 percent to 170,000 units, thanks in part to slow demand for the Volkswagen Passat and Jetta.