Volkswagen Group announces major strategic reshuffle

The Volkswagen Group has outlined plans for a major restructuring under new CEO Oliver Blume.

In a move aimed at providing a “closer working connection” between each of the German giant's main brands, Volkswagen, Audi and Porsche will take on new areas of competence within a revised business structure that will provide “clearer priority setting and faster implementation of change”.

Effective from 1 January 2023, Volkswagen will be responsible for production and procurement, Audi will be the lead for sales and quality and Porsche will head development and design.

“Excellent quality and iconic design have always been USPs of the Volkswagen Group and its brands,” Blume said. “Managing these key functions via the brands will allow us to intensify our focus."

The decision to position the Volkswagen, Audi and Porsche brands as the key drivers of the Volkswagen Group’s business operations comes after it announced a 10-point plan in September, designed to strengthen its brands over the longer term.

Under the plan, the Volkswagen Group said “distinct improvements in product substance, quality and design are to be achieved in future years”.

To facilitate the strategy, the Volkswagen Group has announced changes to its management.

As of 1 January, Michael Neumayer will assume responsibility for quality management across the Group while retaining his position as head of quality at Audi. He replaces Frank Welsch, who is retiring.

Michael Mauer will become head of Volkswagen Group design again, replacing Klaus Zyciora, who is leaving the company.

Zyciora, who has held the top job since 2020, penned the entirety of the Volkswagen ID electric car line-up and oversaw the design of the sixth, seventh and eighth generations of the Volkswagen Golf.