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VW Group to split brands under four holding companies

The Volkswagen Group is planning a tremendous shift in its internal structure that will decentralize operations by splitting its 12 brands into four different holding companies. Here's the breakdown. Things will be split logically, considering the inter-sharing of parts, platforms, and engines. The Volkswagen brand, Seat, and Skoda make up a passenger vehicle division led by former BMW man Herbert Diess. Audi, which is tightly intertwined with Lamborghini and motorcycle manufacturer Ducati, will be managed by current Audi exec Rupert Stadler. Porsche and Bentley, which are already quite close, will be joined by Bugatti and run by Matthias Mueller. Finally, a commercial vehicles division will include Volkswagen Commercial, Scania, and Man. Former Daimler exec Andreas Renschler will take care of the big vehicles. The massive move, according to Automotive News Europe, is part of an internal VAG effort to move away from the structure established by ousted Chairman Ferdinand Piech, who favored a compact, but highly centralized, management structure to oversee the independent actions of the company's brands. Criticism of Piech's arrangement stemmed from the company's slow responses to changes in the market, ANE reports. The new structure should make for a more efficient, streamlined company that's better able to make crucial decisions. What are your thoughts? Should VAG decentralize, or did Piech have the right idea? Have your say in Comments.

The mood at this year’s Paris Motor Show: Quiet

The Paris Motor Show, held every other year in the early fall, typically kicks off the annual cavalcade of automotive conclaves, one that traverses the globe between autumn and spring, introducing projective, conceptual and production-ready vehicle models to the international automotive press, automotive aficionados and a public hungry for news of our increasingly futuristic mobility enterprise. But this year, at the press preview days for the show, the grounds of the Porte de Versailles convention center felt a bit more sparsely populated than usual. This was not simply a subjective sensation, or one influenced by the center's atypically dispersed assemblage of seven discrete buildings, which tends to spread out the cars and the crowds. There were not only fewer new vehicles being premiered in Paris this year, there were fewer manufacturers there to display them. Major mainstream European OEM stalwarts such as Alfa Romeo, Fiat, Nissan and Volkswagen chose to sit out Paris this year, as did boutique manufacturers like Bentley, Aston Martin and Lamborghini. This is not simply based in some antipathy on the part of the German, British and Italian manufacturers toward the French market — though for a variety of historical and societal reasons that market may be more dominated by vehicles produced domestically than others. Rather, it is part of a larger trend in the industry. Last year, Mercedes-Benz announced that it would not be participating in the flagship North American International Auto Show in 2019 — and that it might not return. Other brands including Jaguar/Land Rover, Audi, Porsche, Mazda and nearly every exotic carmaker have also departed the Detroit show. Some of these brands will still appear in the city in which the show is taking place, and host an event offsite, to capitalize on the presence of a large number of reporters in attendance. And even brands that do have a presence at the show have shifted their vehicle introductions to the days before the official press opening in an attempt to stand out from the crowd. In many ways, this makes sense. With an expanding number of automakers, with diversification and niche-ification of models and with wholesale shifts that necessitate the introduction of EV or autonomous sub-brands, there is a growing sense that, with everyone shouting at the same time, no one can be heard.

Bentley's first electric car will arrive in 2025 at the earliest

Now that it's back in the black, Bentley is busily planning its move into the electric car segment. The company's chief executive shed light on how his team will link the past and the future. When it comes to new products, company boss Adrian Hallmark told Automotive News Europe that "it's all about electrification." The first Bentley with a plug is the Bentayga Hybrid unveiled at the 2018 Geneva Motor Show. Looking ahead, an electric car will join the range, but executives haven't decided what form it will take, or what it will be powered by. Several options remain on the table. What's certain is that Bentley won't stuff an electric powertrain into one of the cars in its current portfolio. "We could take one of the existing nameplates, and that could be the first electric car, but we wouldn't take an existing car and try to fit batteries into it, because there's a compromise from a range and efficiency point of view," Hallmark explained. The challenge isn't simply to make an electric Bentley; the British firm wants to ensure its first battery-powered model credibly lives up to the badge on its nose. That means it needs to blend effortless power with an acceptable amount of driving range. Bentley is part of Volkswagen, so using one of the platforms in the group's growing arsenal of architectures isn't out of the question. And, Hallmark affirmed engineers will take advantage of the innovative packaging possibilities made possible by electric powertrains. He explained the firm isn't about to release a Mini, but an electric Bentley could have a smaller footprint than, say, a Mulsanne while offering a comparable amount of interior space. He cited the Jaguar I-Pace as an example, which he said is nearly 14 inches shorter than Land Rover's Range Rover, yet is about as spacious inside because electric motors require less space than a comparable gasoline- or diesel-burning engine. The trade-off is that an electric Bentley would need a sizable battery pack, and designers would likely have to put the car on stilts to leave enough room in the cabin for people and gear if they were to pen an electric car in 2020. Solid-state battery technology will solve that problem when it's ready for production, according to Hallmark, though he didn't reveal whether he's open to waiting for the new chemistry or if Bentley's first electric car will ship with a lithium-ion battery pack.