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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.

New Lamborghini Urus variant sets SUV record at Pikes Peak

Lamborghini has dethroned sister company Bentley and set a new record for SUVs on the track used for the Pikes Peak International Hill Climb. The next evolution of the Urus — which hasn't been unveiled yet — beat the time set by the Bentayga in 2018 by over 10 seconds. Draped in camouflage, the mysterious Urus raced up the 156-turn course in 10 minutes and 32.06 seconds. For context, the Bentayga that just got knocked off the podium's top spot set a time of 10 minutes and 49.9 seconds in June 2018. Lamborghini doesn't want to give away too many details before it unveils the record-setting Urus but it noted that the model was largely stock. The only modifications made were required to comply with safety regulations; the list includes a roll cage, race seats with six-point harnesses, and a fire extinguishing system. If you're wondering "wasn't Pikes Peak held in June?," you're absolutely right. Lamborghini clarified that the Urus was not entered in the official hill climb that celebrated its 100th edition in 2022. Its time was recorded by the event's official time-keepers, however, and the course was evidently closed to traffic for the occasion. Italian racer (and Pirelli test driver) Simone Faggioli set the record. We won't have to wait long to find out what's behind the camouflage. Lamborghini will unveil the next Urus evolution in August 2022. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.  

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.