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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.

Watch an Aventador, Viper and LFA play the songs of their people

Our friends at Road & Track recently stopped by Cars and Coffee in Irvine, California, with the 2013 SRT Viper and found themselves a place to park between a Lamborghini Aventador and a Lexus LFA. Those machines might as well be the three musketeers of ludicrous exhaust notes, and rather than keep those 24 raging cylinders muffled, R&T set about conducting an orchestra of internal combustion. On seeing these three lined up, we were more than prepared to call the Viper victorious when it came to tickling our ear drums, but the latest domestic V10 sounds down right civilized in this company.
If we're picking favorites, we have to say the LFA takes the cake. There's something about the noise of a street-legal V10 that can wrap it's tachometer all the way to 9,000 rpm that turns our knees to quivering dollops of jelly. Check out the clip below for a listen. We shouldn't need to tell you to get frisky with the volume.

The rationale behind Lamborghini's Urus

If you've been following developments in Sant'Agata Bolognese lately, you'll know that the world's most unabashed supercar producer is adding an SUV. Code-named "Urus," it will join the brand's existing two-model (Aventador/Huracan) lineup. It's a bold move for a company with a reputation built on iconic two-seaters including the Miura, Countach, and Diablo, and by its CEO's own admission the decision "will radically change Lamborghini." Why risk the company's exclusive, extroverted image on a vehicle associated with mundane tasks and parents who can't bear the thought of driving a minivan? Two reasons, says CEO Stephan Winkelmann. "The SUV Segment is still fast growing worldwide," he notes. Indeed, global demand for SUVs is up 88 percent since 2008, making utility vehicles the fastest-growing segment around the world, according to IHS Automotive. Utilities now comprise 19 percent of the global vehicle market. In addition, "sales can be equally distributed over our three major regions...the Americas (the US is Lambo's top market), EMEA (Europe, Middle East, Africa), and Asia Pacific." Lamborghini expects Urus to double sales from its current 2,500 cars per year to nearly 5,000. Adding a third model line "supports more consistent volumes and competitiveness of the company and our dealers," he continues. Further, Winkelmann maintains that an SUV fits the DNA of Lamborghini. "Our brand has a history of many types of cars such as GTs, super sports cars, and with the LM002 from 1986 to 1992, even an SUV. We learned together with our designers and product people that the SUV represented this opportunity the best." Structural implications include an expansion of the diminutive company's roughly 1,200-employee workforce by 50 percent, or 500 new hires, and the construction of a new facility near its headquarters to build the Urus. Building the new Lamborghini in Bologna is key to differentiating Urus from the other Volkswagen Group premium SUVs (Bentley Bentayga; Porsche Cayenne; Audi Q7 and Q8; and Volkswagen Touareg) that will share the same platform, and Winkelmann put great effort into persuading VW the move made economic sense. "We worked many months building the business case for approval because we are convinced the SUV will be a success and the best place to build it is in Sant'Agata Bolognese," Winkelmann stresses. "We are not simply adding another line in an existing building. Rather, we are talking about greenfield construction.