Volkswagen: The brand groups are dead!

Here's the latest info about the re-organization of the Volkswagen Group. Biggest change: no more brand groups!

- New areas of responsibility on Board of Management and Executive Committee ensure synergies and opportunities for growth for the entire company
- Supervisory Board agrees to Prof. Dr. Winterkorn’s plans for restructuring Group
- Dr. Wolfgang Bernhard leaves Board of Management of Volkswagen AG

In a meeting today, the Supervisory Board of Volkswagen AG agreed unanimously to the plans of Chairman of the Board Prof. Dr. Winterkorn for the restructuring of the Board of Management and the Group Executive Committee. With this move, the Supervisory Board opens the way for even greater synergies within the Group.

The Brand groups which have existed up to now, Volkswagen (comprising Volkswagen, Skoda, Bentley and Bugatti) and Audi (including Audi, Seat and Lamborghini) will be disbanded.

The Group Board of Management

Dr. rer. pol. Wolfgang Bernhard, Chairman of the Board of Management of the Volkswagen Brand and Member of the Board of Management of Volkswagen AG, will, by mutual consent, be leaving the company with effect from 31.01.07 as a result of the reallocation of responsibilities within the Volkswagen Group. As of this date, Prof. Dr. Martin Winterkorn will be taking over the chairmanship of the Board of Management of the Volkswagen Brand in addition to his other tasks.

A new area of responsibility, Group Research and Development, will be created. It will be led by Prof. Dr. Martin Winterkorn, in addition to his other tasks.

A new area of responsibility Group Production will be led by Dr. Jochem Heizmann with effect from 01.02.07. Heizmann was previously responsible for production at the Audi brand.

The third new area of responsibility is Group Sales. The holder of this position will be decided at a later date. The responsibility for volumes, revenue and earnings remains fully with the brands.