July 24, 2021
Diess - A New Boss at VW to Create a Streamlined Market

Diess – A New Boss at VW to Create a Streamlined Market

While it appears that Volkswagen was past the diesel scandal of 2015, it seems the group is looking for a way to create a streamlining in its brand groupings and in the processes offered. We saw some of this taking place in the past when some brands shared platforms in order to help create groupings for the technology sector of the Volkswagen Group, now we may see even more changes. With the new CEO, Herbert Diess, in place, the idea is to simplify this highly complicated group of brands that support a variety of the market.

Right not it seems there may be a few brands on the chopping block that’s aren’t as publicly versatile as the brands we know and admire. This could mean the selling of MAN Diesel which makes large-bore diesel engines, Renk AG, which is a producer of gear drive assemblies, and even the beloved motorcycle brand Ducati, which was recently purchased, could become offered on the market as well. These moves would certainly simplify the portfolio and allow the VW Group to begin to focus more on the brands that make the money and are offered with the qualities that we want in a variety of markets around the world.

How Else with VW Simplify Its Program with Diess?

While the brands that will be sold off could easily help streamline the offerings from this large group, the next part of what the CEO wants to do is put the different brands into groups together that make a lot of sense. For example, Volkswagen, Skoda, Seat, and VW Commercial would all be under one group as the volume brands that offer the most vehicles for sale while the high-end models of Bugatti, Lamborghini, and Bentley would be under a separate group.

There’s nothing concrete regarding exactly how the VW Group will be simplified, but the new CEO seems confident and was an obvious choice when he was able to handle some of the VW labor disputes in recent years. After being with BMW for nearly two decades, Diess is poised to make sure the VW Group will be able to steer the group forward for success. One goal he has stated is ensuring an increase of market share in the US and China is realized in the upcoming years as these remain the two largest markets in the world.

VW has announced over recent years the goal to produce a specified number of EV and hybrid models to bolster this area of the market. With a goal of trimming away the brands that aren’t needed and creating the future of the market, it appears Volkswagen is poised to continue to be a strong performer and a leader in the world automotive industry. We’ll get to see what changes are made over the next several years, but it seems to have Diess in charge could be the right choice to make sure this group can continue to grow and flourish.