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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.

2019 BMW X7 vs luxury SUV rivals: Comparing specs and photos

Today we get our first-ever look at the first-ever 2019 BMW X7 crossover. We've actually already had our first-ever drive in an X7 Prototype. And so, we thought it appropriate to follow that up today with the first-ever X7 comparison of specs between BMW's first-ever three-row crossover with legitimate room for seven and its many high-dollar competitors. On paper, the 2019 X7 definitely seems to most closely align with the Mercedes-Benz GLS-Class. Their similar dimensions, interior space, engine choices and price would certainly imply where BMW placed the target when developing X7. We used those same elements to determine three-row vehicles likely to be cross-shopped or that should be cross-shopped. These include the Audi Q7, Land Rover Discovery, Volvo XC90 and Lincoln Navigator. Yes, the latter is a truck-based SUV as opposed to a crossover, but tell that to all the people lining out the door at the local Lincoln emporium. They do not care, and neither shall we. We also included the 2019 BMW X5, which was completely redesigned for this year and therefore not the first-ever. That makes it less appealing? Either way, lining the new X5 up with the SUV that leapfrogs it atop BMW's SUV hierarchy should provide a good idea of just how much more you get by going up a model number. Engines and model lineup Again, the X7 aligns closest with the GLS, offering a base six-cylinder in its xDrive40i model and an upgrade turbo V8 in the xDrive50i. The Mercedes engines have greater output, but the GLS still accelerates slower than the BMW. As the 2019 X5 offers the exact same engines, we would also expect the X7's fuel economy to be superior to the GLS once its estimates are announced. It should be noted, though, that the GLS offers a high-powered AMG model whereas we anticipate the X7 to offer a plug-in hybrid model comparable to the X5 upcoming xDrive45e model. The other luxury SUVs diverge in their engine choices and model lineup. The Audi Q7 offers a base turbocharged four-cylinder, as does the Volvo XC90 in its T5 model, which we left out of the above chart entirely for space reasons. That the Q7 3.0 TFSI supercharged V6 gets the same fuel economy estimates as the four-cylinder is proof positive that engine is purely around for its lower base price.

Car companies may need to start curbing model proliferation

Looking at the current automotive landscape, especially from German makers, you quickly get the impression that less definitely isn't more. BMW alone offers its 3 Series platform in practically every segment possible, including the regular sedan and 4 Series Gran Coupe, which would seem to be direct competitors. Porsche might be the winner, though, with 20 different variants of the 911 listed for sale on its US website. However, some of this model madness might be reaching an end as companies begin cutting back spending or shifting money to other priorities.
According to Yahoo Finance, the offerings from the German automakers are up 25 percent over the past three years to over 200 models in Europe. The peak is expected to come around 2018 at 230 separate vehicles, according to consulting company PwC.
Amazingly, BMW, which is among the poster children for this model explosion, might be changing its tune. "I'm sure there will be points in the future where we look at certain cars and say, 'Maybe we need to think differently now,'" said head of sales Ian Robertson in an interview, according to Yahoo Finance. The statement certainly sounds shocking coming from a company rumored to have 23 front-wheel-drive vehicles all using a single platform on the way.