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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.

Lamborghini Gallardo LP570-4 Squadra Corse isn't mellow, comes in yellow

Normally, this is the part where we remind you that the Lamborghini Gallardo is about to be replaced, and that this LP570-4 Squadra Corse is the swan song for the model range. That first part may be true, but at this point, we'd be shocked if yet another special edition Gallardo didn't debut before the car's successor is unveiled. Gotta make that money, honey.
But back to the Squadra Corse. This latest Lambo shares the majority of its components with the Gallardo Super Trofeo, which itself is based on the Superleggera, meaning that car's 570-horsepower V10 carries over, as does the carbon fiber rear wing and removable engine hood. Massive weight-saving methods have been employed here with the Squadra Corse, and thus, the big coupe tips the scales at just 2,954 pounds - that's less than a Volkswagen Golf.
Of course, with that little weight and that much power, performance is pretty staggering. Hitting 60 miles per hour takes 3.4 seconds and the car will rocket to 124 mph in 10.4 clicks. Top speed: 199 mph. Just couldn't muster up that additional mph, we guess.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.