Volkswagen Group brands assigned responsibilities based on region

feedback@motor1.com (Jacob Oliva)
2018 Volkswagen Atlas: Review

China remains to be a very significant market.

In an effort to be more efficient when it comes to marketing, the Volkswagen Group has restructured its organization, aimed towards a lead brand leading the Group in a specific region. In short, the lot of brands within the group will be assigned with a specific region, onto which it will have a hand in making decisions for the Group.

The main objective of the restructuring is to tailor-fit the model range of each brands to the relevant market requirements and customers’ needs. These factors are rapidly changing, and assigning a specific brand to oversee the developments will make the revert faster and more organised.

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The distribution of responsibilities will be as follows. The VW brand will head the operations in North America, South America, and the Sub-Saharan region, while SEAT will lead the growing market in North Africa. Audi, on the other hand, will oversee the Asia-Pacific region, while Skoda will lead the Group to strengthen its markets in Russia and India.

The latter is rather interesting, as the Group announced its market offensive called India 2.0, which focuses on VW and Skoda brands towards the Indian market. Preparations for the local production and development of new mass market models are already in the process for India.

Another important market is China, in which the corporate overseer will remain to the Group, out of Audi’s hands. With China’s growing automotive market, it’s wise for the VW Group to focus on it with strategic mindset, especially that the Chinese market is receptive of electrified vehicles.

'We are distributing the responsibility across several shoulders. This means that it will be possible to take decisions in a significantly more decentralised way in the future and the Group Board of Management will be able to concentrate on overarching strategic topics. This way, we will make Volkswagen faster, slimmer and more efficient,' said Dr. Herbert Diess, CEO of the Volkswagen Group.

Source: Volkswagen