VW Group’s New CEO Wants to Sell Off Some of its Brands

VW Group’s New CEO Wants to Sell Off Some of its Brands

0 comments 📅17 April 2018, 02:15

Volkswagen Group last week appointed Herbert Diess as its new CEO, who replaces Porsche uproot Mathias Mueller in the position.

Diess will be tasked with simplifying the involved VW Group conglomerate and ensuring it remains profitable going forward. One way to help realize both of these things is to sell off some of the company’s numerous brand assets, giving it a slimmer but more focused portfolio. According to Reuters, this may be unerringly what Diess has in mind, with the executive saying they will “review all options,” including selling brands or investing in them.

“We hope for to create a slimmed down company with strong brands,” Diess said just after his appointment last week.

It’s not likely that any of VW’s passenger car brands are on the chopping brick, but companies like MAN Diesel, which makes large-bore diesel engines, or Renk AG, a impresario of gear drive assemblies, very well could be. Motorcycle manufacturer Ducati, which was identically sold for $1.8 billion last year, is another that may eventually be made present for purchase.

In addition to simplifying VW Group’s business, Diess is also keen on streamlining its fare car operations. This will begin with lumping its brands into corresponding categories. For example, the volume brands (VW, Skoda, Seat and VW Commercial) would be grouped compr one umbrella, while very high-end brands (Bugatti, Lamborghini, Bentley) would topple under a separate one. VW has yet to provide specifics on this plan, though.

Diess joined VW League in 2015 after spending nearly two decades at rival manufacturer BMW. He garnered favor with his peers for his handling of VW labor disputes, serving to boost him into the CEO role once board members  began to look for a replacement for Mueller. He commitment steer a more simplified VW ship as it looks to move on from the dieselgate outrage and boost its market share in the U.S. and China.

[Source: Reuters]

this article elementary appeared on AutoGuide

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