Volkswagen Group changes corporate structure

12 brands will be combined in groups of four holding. Creating a decentralized system should increase the effectiveness of Europe's largest automaker

On the change of corporate structure Volkswagen Group reported the German economic newspaper Handelsblatt citing sources of the company. Reforms are necessary because of the high costs of key VW plants in Germany, the newspaper said.

A former top manager of BMW Herbert Diss responsible for the holding, which will include brand mass market passenger cars - Volkswagen, Skoda and SEAT, writes the German edition. Diss take up his duties on 1 July, gave Reuters, citing three sources in the company. For the brands Audi, Lamborghini and Ducati will be formed another holding company headed by the current Audi CEO Rupert Stadler. Porsche, Bentley and Bugatti will be grouped in the unit under the direction of Porsche Matthias Müller. In holding Truck & Bus will be included VW Commercial Vehicles and manufacturers of heavy trucks and buses Scania and MAN; it will be headed by a former director of Daimler Trucks Andreas Renshler, writes Handelsblatt.