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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.

VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

Porsche to introduce new Boxster Spyder, Macan GTS this year

Dig the new Porsche Cayman GT4 but really wish it came in open-top form? Love the Boxster GTS but wish it had more punch? Well we've got good news for you, friend, as that seems to be precisely what Porsche has in store. Among the new models the Volkswagen Group has lined up for this year will be a new Porsche Boxster Spyder. Although no details were announced along with the name, there are a few elements we can look forward to. The new Boxster Spyder is tipped to be essentially an open-top version of the Cayman GT4, but just how many of the latter's components will make the jump from coupe to convertible remain to be seen. The GT4 packs the 3.8-liter flat six from the 911 Carrera S with 385 horsepower, channeled to the rear wheels through an old-school six-speed manual transmission. It also has carbon-ceramic brakes, revised aero, and a stiffened suspension. The Spyder version of the previous Boxster arrived in 2009 with a modest 14-horsepower boost, a retuned suspension and a good 176 pounds trimmed off its curb weight thanks to the elimination of the motorized soft top, air-con and other components. That's not all Porsche has in store for 2015, though. The German automaker has also confirmed a Macan GTS is in the works that promises to explore the little crossover's performance potential. Projecting just what Porsche will do to Macan to give it the GTS treatment, though, is a little tricky. Sure, the German automaker already offers GTS of the rest of its lineup, but just where that model slots in to each line varies. On the Boxster and Cayman, it slots in between the S and GT4/Spyder. For the 911, it serves as a mid-point between the Carrera S and the GT3. And with the Panamera and Cayenne, the GTS bridges the gap between the S and Turbo models. Considering both the Macan S and Macan Turbo pack twin-turbo V6s, the Macan GTS could serve as a mid-point between the S and Turbo with around 350-360 hp, or (more likely) top the range with upwards of 420 hp. One way or another, though, we can expect upgrades to the suspension, brakes, rolling stock and trim to complete the package. Most of the rest of the announcements made in VW's annual report we either already knew about or are of little interest, but the document also confirms new Lamborghinis on the way, including two new versions of the Aventador (likely to be the new SV coupe we just saw and an SV roadster) and three more of the Huracan as well, including two Spyder versions of the latter.