The public welcomes historic moments: 3 major brand portfolios, 6 major businesses

This reform is for a longer-term consideration. As the public gradually moves out of the diesel door incident, the group's business needs further simplification.

The Volkswagen Group has made its biggest change since becoming a multi-brand giant.

On April 13, Volkswagen Group announced that the original Volkswagen brand CEO Herbert Diss will replace Matthias Muller as the new CEO of Volkswagen Group. After serving as the new CEO, Diss will also be responsible for the group's R&D and information technology. . It is worth noting that considering the importance of automotive connectivity, the Vehicle IT business will be led by Dess himself.

The Volkswagen Group also announced that it will set up six business sector segments and set up a dedicated business portfolio for China, the world's largest market. In addition, the Volkswagen Group split its 12 major brands into three categories.

3 major brand portfolios, 6 major businesses

In addition to appointing Diss as the new CEO, Volkswagen Group also announced that Audi CEO Stead will be responsible for the group's sales, Porsche CEO Oliver Bloom will be responsible for the production of the group's multi-brand models, and he will be promoted to the Volkswagen Group executive director.

In addition, Francisco Javier Garcia Sanz, director of Volkswagen's global purchasing division, will leave, and Ralf Brandstaetter, Volkswagen Brand Purchasing Director, will take over. At the same time, Gunnar Kilian from the Volkswagen Union will replace Karlheinz Blessing as the Human Resources Director of the Volkswagen Group.

In addition to personnel changes, the Volkswagen Group also announced that it will set up six business sector segments and set up a dedicated business portfolio for China, the world's largest market. The Volkswagen Group has split its 12 major brands into three categories, namely ordinary, premium and ultra-luxury brands, while Diss, Stead and Bloom will be in charge of the Group's three major, luxury and ultra-luxury brands. New brand department.

The public welcomes historic moments: 3 major brand portfolios, 6 major businesses

Although Volkswagen has not released detailed details, members of the Volkswagen Supervisory Board revealed the classification of the brand:

General category: Volkswagen, Skoda, Seat, business car

Luxury category: Audi

Ultra-luxury categories: Porsche, Bentley, Lamborghini, Bugatti

Industry analysts pointed out that such business splits will help the Volkswagen Group become more flexible and efficient in response to rapid changes in the industry, such as the rise of electric vehicles and the development of autonomous driving technology.

Why is Muller going out?

In fact, the first two days broke the news that the public will adjust the management, and this also involves Muller's position. In this regard, in the eyes of the industry, Muller’s “out” seems to have been doomed.

In 2015, after the public “emission door” incident was exposed, Muller became the CEO of the Volkswagen Group. During this period, Muller led the Volkswagen Group to deal with the cheating scandal and complete the strategic transformation to electric vehicles. In 2017, Volkswagen Group's operating profit margin rose from 6% in 2015 to 7.4%, while Volkswagen also surpassed Toyota to become the world's largest automaker.

The public welcomes historic moments: 3 major brand portfolios, 6 major businesses

Muller (right)

Although Muller had achieved very good results during his tenure, many negative public relations incidents also affected his tenure. Muller advocated decentralization, but in the process it was resisted by the Saxon state government. In a later interview, Muller said, "He doesn't like politicians who interfere with his work." Mullen is open. It seems more and more uneasy and dissatisfied when you show up.

In addition, in February of this year, sources close to the top management of the public have revealed that Muller is quite frustrated by the lack of support for its reform efforts and the failure to deal with the company’s emissions scandal in a timely manner, which may be to some extent Accelerated Muller’s departure.

For Muller, he is also willing to leave, and he is even a little tired of his position. From the perspective of the Volkswagen Group, this reform is for a longer-term consideration. As the public gradually moves out of the diesel door incident, the Group's business needs further simplification.

How did Diss become a successor?

Since Muller’s “out” seems to have been doomed, why is the successor a diss? Before you understand this, let's take a look at Diss.

Diss began to enter the majority of people's vision is starting in BMW. In 1996, Diss began to work for BMW. In 2003, Diss became the head of BMW Motorcycle. In 2007, he was promoted to director of BMW Group. In 2012, he was promoted to director of research and development technology.

In May 2015, Diss left BMW to come to the Volkswagen Group as the CEO of the Volkswagen brand. At that time, when the global sales of the Volkswagen brand fell, the top priority of his appointment became the implementation of the reduction plan proposed by Wendeng, CEO of the Volkswagen Group at that time. In the later period of time, Diss reversed the image of the mass brand by reforming development and controlling costs.

The public welcomes historic moments: 3 major brand portfolios, 6 major businesses

Diss

In addition to a wealth of experience, decisive personality and strong execution also added a score to the CEO of Diss. The first thing that Des made after becoming the CEO of Volkswagen's passenger car was the suspension of Phaeton. It should be known that at the time when the new generation of Phaeton had been developed and will be launched, and Diss still chose to shut down Phaeton, it must be said that Diss character is indeed decisive.

In addition, the background of the “clean” experience of not having a tail valve event is another point for him, and this is his biggest advantage compared to Muller.

Being sophisticated, experienced, and decisive makes Dess a prerequisite for becoming a CEO. The public image of the sun and the “clean” background of the industry have also added a lot of color. These are the factors that Diss was elected CEO.

In addition, from the outside world, Diss is also more suitable for the role of the new CEO. Analyst Arndt Ellinghorst said in a report to investors that if Diss becomes a successor, it will increase the profitability of public stocks because "his strong execution and insight into the era of mobile travel contribute to the development of the group. Being able to properly handle traditional businesses can also make a reasonable investment in future technologies."

However, after the appointment of Diss, the task is not light: the follow-up work of the Volkswagen diesel door incident, the risk of being fully investigated, and the management, the Volkswagen Group also faces the problem of irregular enterprise management, which requires Des to handle . In the future, Des, as the new CEO, still has a long way to go.

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