Volkswagen to Bundle Its Brands Into Sporty, Traditional Groups

The WSJ reported that Bernd Pischetsrieder will have his hands full when he takes over as chairman of Volkswagen AG next April, personally assuming key posts aimed at sharpening the auto maker's image and quality. Volkswagen's supervisory board confirmed Friday that the company will reorganize its main car brands into two groups. One, to be headed by Audi, is to focus on sporty market segments and will include Spanish brand Seat and Lamborghini. The other, led by the Volkswagen brand itself, is to seek more traditional customers and will include Czech make Skoda, Bugatti and Bentley. Pischetsrieder is taking over much of the company's management load. In addition to becoming chairman of the entire company, he is now to lead the new VW group and oversee both quality control and research and development. It is an unusual combination in the German auto industry where chairmen typically delegate such duties to other board members.