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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.

Lamborghini weighs first factory-backed Le Mans entry

Lamborghini could expand its racing program by competing in the World Endurance Championship (WEC). The Italian company has never been able to justify funding the development of an LMP1-spec prototype from the ground up, but the hypercar category the WEC will launch in 2020 makes competing in high-profile races like the 24 Hours of Le Mans much more affordable. The new class created to pick up where LMP1 will leave off has piqued the interest of Lamborghini boss Stefano Domenicali. He told British magazine Autocar that his team is taking a careful look at the regulations, and company officials will decide whether to go racing by the end of 2019. The hypercar category will replace LMP1 during the 2020/2021 season, and its guidelines call for racers that look like production models. They'll need to weigh under 2,160 pounds, and they'll be allowed to use active aerodynamic technology, which Lamborghini already uses on production models like the Aventador SVJ, the Huracan Performante, and the Huracan Evo. Domenicali hinted a car similar to the one-off, Aventador-based SC18 (pictured) introduced in late 2018 could take Lamborghini racing. It shows the company has "a base for what could be an interesting approach," he told Autocar. Created at the request of a customer, the SC18 delivers 770 horsepower and 531 pound-feet of torque thanks to the Aventador's naturally-aspirated, 6.5-liter V12. If Lamborghini chooses to race, it will need to fend off competition from Aston Martin and Toyota, among others. Aston Martin confirmed it will compete in the hypercar category with an evolution of the 1,160-horsepower Valkyrie, while Toyota is busily transforming the Super Sport concept into a hypercar-spec racer. Unverified reports suggest McLaren and Ferrari could also join the fray sooner or later. While Lamborghini's history isn't rooted in racing, and it has never operated a full, factory-backed WEC program, its cars have competed in the 24 Hours of Le Mans and other endurance events on several occasions. Die-hard fans will remember the Murcielago R-GT that raced at Le Mans between 2006 and 2009. It was more show than go, and it finished near (or at) the bottom of the pack. Auto News Motorsports Lamborghini Le Mans lmp1

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.