Volkswagen giving extra momentum to its strategy 2018 with realignments

MUMBAI: Volkswagen is giving extra momentum to its strategy 2018 with an extensive structural and management realignment. "This fundamental reorganization is the right response to the increasing challenges.

At the same time we are laying the foundations for keeping the Group and its brands on their successful course even in a difficult market environment, said Board of Management CEO, Martin Winterkorn

Under the reorganization a new Board of management function for " China" will be set up at group level, thus underpinning the significance of the largest sales market in the world.

The Volkswagen Group delivered some 2.3 million vehicles in the China region in the 2011 fiscal year and reported a pro rata operating profit there of €2.6 billion.

Jochem Heizmann, latterly Group Board of Management member with responsibility for "Commercial Vehicles", will head the new function.

The commercial vehicles business has become the second strong pillar for the Volkswagen Group in recent years.

The further structuring of the "commercial vehicles" function in the Group Board of Management under the leadership of Leif Ostling now paves the way for close co-operation between the MAN, Scania and Volkswagen commercial vehicles brands to leverage synergies and jointly harness the substantial worldwide growth potential in this segment.

In his new function, Leif Ostling, President and Chief Executive Officer of Scania until August 31, will be supported by a team comprised of managers from MAN, Scania and Volkswagen who will further network and cooperate among the companies involved.