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Winterkorn receives support of VW board, leadership battle continues

Strange things have been happening - in public, that is - at Volkswagen over the past few weeks, kicked off when VW Group chairman Ferdinand Piech reportedly said he didn't want Group CEO Martin Winterkorn to be the next company chairman, and that he was keeping Winterkorn "at a distance." Winterkorn's ascension was widely believed to be a fait accompli. We were really just waiting for office furniture and desk plaques to be moved around. That led to a meeting of the six-member supervisory board's leadership committee in Piech's office in Salzburg, Austria, not at Group HQ in Wolfsburg, Germany, where the five other members of the committee came out in support of Winterkorn. They also suggested they might extend his contract when it ends in 2016, and then gave Piech an ultimatum to agree to public support of the CEO or they would demand Piech's resignation. At the same time, the company's labor reps and the German state of Lower Saxony issued statements supporting Winterkorn. It's said that the chairman has a number of gripes with the CEO, prime among them being the state of the company's US business for the core Volkswagen brand. Market share has dropped to two percent in the United States and Winterkorn admitted that his team hasn't been properly engaged with our market. Years of effort put into a budget car haven't resulted in much except the company saying it finally knew how to do one, and that was a year ago. It's losing share in Brazil, overall profit margins are down, BMW is taking possession of the green-car credentials among German brands, and it's said that Piech doesn't believe Winterkorn has the vision to do what's necessary. Having agreed to play along and now in "diplomacy phase," some say a little light has gone out of Piech's star inside the company, while others wonder if this battle is truly over. Related Video: News Source: Automotove News - sub. req.Image Credit: JOHANNES EISELE/AFP/Getty Images Hirings/Firings/Layoffs Volkswagen martin winterkorn volkswagen group

New Audi design chief Massimo Frascella shaped cars for Jaguar Land Rover

At the Audi brand, style and design have long been a high priority; think the super sleek and sexy A7 sedan, the Bauhaus-inspired TT coupe, the single-frame grille that instantly identified the marque with its down-the-road graphics. So when the Bavarians install a new head of design, that’s also worth a look. Massimo Frascella is that person, a 52-year-old Italian designer who this summer will succeed Marc Lichte. Lichte ran Audi design since 2014 and will take up a new role within the Volkswagen Group. Frascella, a student at the Istituto d`Arte Applicata & Design in Turin, ignited his career at Stile Bertone, and his resume after that evolves impressively. He subsequently held positions at Ford Motor Company and Kia, and since 2011, Frascella has held senior positions at Jaguar Land Rover. He was responsible for the creation of several models: Discovery Vision Concept (2014), Discovery Sport (2014), Discovery (2016), Velar (2017), Evoque (2019) and Defender. In 2019 he became creative director of Land Rover and in 2020 design director. He was also instrumental in the development of the range of new electric Jaguars that are in the works. “Joining Audi is a very special moment for me,” Frascella said. “I am deeply honored to assume the role of chief creative officer and to guide such a talented team in shaping the future of the brand to new heights of innovation and distinction. I believe in the emotional power of design to inspire, connect, and drive change, and I am here to nurture and promote creativity as the beating heart of our brand.” Looking back a couple of decades, it was one of FrascellaÂ’s predecessors who helped to cement AudiÂ’s reputation in automobile design: Walter de Silva. De Silva was appointed head of Audi design in 2002. From 2007 to 2015, he supervised the design strategy for the entire Volkswagen group, including the TT, the Scirocco, the Passat and the Golf. Not a bad list of achievements, but in a interview several years ago, de Silva said that he considered the 2007 Audi A5 coupe the pinnacle of his automotive design art, citing its “sex appeal, the shape of the lights, the architecture.” Design/Style Audi Jaguar Land Rover Volkswagen Automotive History

Volkswagen feuds with thriving stablemate Skoda

BERLIN, Oct 4 (Reuters) - Volkswagen managers and unions are seeking to curb competition from lower-cost stablemate Skoda, move some of its production to Germany and make the Czech brand pay more for shared technology, company sources told Reuters. As VW struggles to cut jobs and spending at German factories and turn the page on dieselgate, Skoda's superior car reviews and profitability have intensified the brands' rivalry within the Volkswagen empire. VW now wants to reduce what it sees as Skoda's unfair advantages - combining German technology with cheaper labor - and reaffirm the top-selling brand's primacy ahead of a wave of new electric car launches, the sources said. The tussle between VW and Skoda is reviving tensions at the heart of the Volkswagen group between profits and jobs, and between central control and autonomy for its 12 vehicle brands. "Instead of devoting our efforts to beating Tesla, we may just be setting up a futile internal conflict," said one manager. Once the butt of jokes, Skoda has blossomed under 26 years of VW group ownership into a successful mid-market carmaker, steadily winning business from rivals - including VW - and surpassing even Audi's operating profit margin last year. At the same time, VW is facing thousands of job cuts as management moves to trim excess capacity at German factories. Its powerful domestic unions see Skoda's success as both a threat and a potential lifeline. VW workers' representatives are now demanding the transfer of some Skoda production to their underused German plants, a source close to the supervisory board told Reuters. The proposal aims to offset declining output of the VW Passat and aging Golf that could otherwise threaten more jobs. They are also making the case that Skoda should pay higher royalties to use VW's main common vehicle platform. The so-called MQB architecture also underpins mid-sized models from the group's Audi and SEAT brands. Responding to the news, Czech Prime Minister Bohuslav Sobotka said he would meet Skoda management and unions to ask for clarification. The government will seek to ensure that VW investment plans are followed through and that "production is not moved outside the country," a statement released by Sobotka's office said. Skoda's main union warned that a production shift could cost as many as 2,000 jobs. VW's works council declined to comment.