Autoblog

Sergio Marchionne actually made $19M last year

Chris Shunk — Fri, 16 Mar 2012 18:01:00 EST

Filed under: Chrysler, Earnings/Financials, Fiat

Remember when we told you that Sergio Marchionne didn't receive a paycheck from Chrysler during 2011? As it turns out, it's because he was busy raking in the big bucks from Fiat.

Automotive News reports that Marchionne earned 14.5 million euros ($19 million U.S.) in 2011. The pay includes seven million shares of Fiat stock, which can be exercised between 2012 and 2015, plus a base salary of 2.45 million euros ($3.2 million U.S.).

That's a lot of money for the vast majority of us, but the Chrysler/Fiat CEO is being paid close to what all the other successful chief executives are receiving. The most direct comparison (since both companies are based out of Europe) is Volkswagen CEO Martin Winterkorn, who made 17.5 million euro ($23 million U.S.) in 2011. Given that VW made $20.5 billion in 2011, we're thinking Winterkorn has a good argument for saying he's worth the extra $4M.

Sergio Marchionne actually made $19M last year originally appeared on Autoblog on Fri, 16 Mar 2012 18:01:00 EST. Please see our terms for use of feeds.

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Volkswagen to follow similar formula for new Phaeton

Noah Joseph — Tue, 14 Feb 2012 17:31:00 EST

Filed under: Sedan, Volkswagen, Luxury

Whatever Volkswagen has done to get to the position of dominance in the European - and indeed the global auto industry, it's clearly been working. But some of its decisions still leave us scratching our heads. The Phaeton is one such four-wheeled decision.

A Volkswagen sedan that shares its platform with the Bentley Continental Flying Spur, the Phaeton offers the space, luxury and meticulous engineering standards you'd expect of a Mercedes-Benz S-Class or BMW 7 Series, in a package decidedly bereft of the badge cachet that goes with it. VW clearly spent big dollars developing the vehicle, so when sales never really materialized, we were hardly surprised that plans were floated to phase it out in favor of something a little more cost-effective for both buyer and manufacturer, closing the enormous canyon between the current Phaeton and the Passat and CC ranges that sit below it.

In fact, we've read reports for years now stating that VW will/will won't follow up the Phaeton with a new model - it's one of the most cyclical future product stories in the entire auto industry. This latest report from Motor Trend suggests that Volkswagen is planning to replace the current Phaeton in 2015 or 2016 with another model in the same mold, downsizing in neither price point nor scale - and bringing the new model back to the North American market in the process. MT suggests the Phaeton will be an technological wonder, going with smaller engines (no W12), forced induction power and available hybrid and plug-in models. Us? we wouldn't be surprised to see the Phaeton adopt the new twin-turbo 4.0-liter V8 engine found in the 2013 Bentley Continental V8.

Apparently VW is keen to retain the buyers who have enjoyed their Phaetons thus far, giving them the conservatively styled, anti-prestige alternative to the luxury sedans built by its sister company Audi and its own retiring executives - including Group CEO Martin Winterkorn and his product chief Ulrich Hackeberg - something of a parting gift.

Volkswagen to follow similar formula for new Phaeton originally appeared on Autoblog on Tue, 14 Feb 2012 17:31:00 EST. Please see our terms for use of feeds.

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GM takes issue with VW chairman Winterkorn's statements about Opel

Zach Bowman — Thu, 14 Jul 2011 18:02:00 EST

Filed under: Etc., GM, Volkswagen, Opel

Volkswagen CEO Martin Winterkorn has apparently ruffled some feathers at General Motors. The American automaker took the time to release a scornful statement about the VW executive's comments toward the beleaguered Eureopean brand, Opel. Apparently, Winterkorn took the time to comment on what he believes the brand faces in the near future while speaking with Frankfurter Allgemeine Zeitung, fuelling speculation that Opel is in dire straits and that a sale may be on the horizon. GM shot back by saying that VW is simply nervous about the launch of the Ampera in Europe, and that the automaker is simply trying to sabotage the Opel recovery.

Them's fightin' words.

GM says that due to the strong positive response that the Ampera has garnered so far, the company is now planning to crank out an additional Ampera models to satiate demand. Additionally, the statement makes it clear that Opel is an important part of the GM flock and that the brand isn't going anywhere anytime soon. Hit the jump to check out the official statement for yourself.

Continue reading GM takes issue with VW chairman Winterkorn's statements about Opel

GM takes issue with VW chairman Winterkorn's statements about Opel originally appeared on Autoblog on Thu, 14 Jul 2011 18:02:00 EST. Please see our terms for use of feeds.

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Five questions we're asking auto execs at the start of 2011. What are yours?

David Kiley — Mon, 03 Jan 2011 19:29:00 EST

Filed under: Detroit Auto Show, Etc., BMW, Honda, Mitsubishi, Volkswagen

The Detroit Auto Show is coming up. After that, we go to the Chicago Auto Show. Then New York and maybe Geneva. We are going to hob-knob with most of the auto industry titans: CEOs, Design Chiefs, Product Development Bosses.

We will be at dinners, group interviews, one-on-one interviews and members of the media will have time "on the sidelines" with these decision makers, sometimes without their pubic relations handlers listening in, trying to keep their bosses from making a headline.

I have a handful of questions for companies and executives I plan to ask. And the rest of the Autoblog staff is jotting up their notebooks with interview appointments and questions they want to ask. But how about you, dear readers, chiming in with yours? We'll do our best to get them answered.

My Questions:

1. For Volkswagen AG CEO Martin Winterkorn: Why all the rhetoric on sales goals? You want one million VWs and Audis sold in North America by 2018. Why? How about getting quality ratings going in the right direction first? VW quality scores have actually fallen in the last two years. Shouldn't quality be "Job One," to quote an old Ford ad slogan? Making it so much about sales seems like a recipe for driving the entire organization toward the wrong goal. Take care of quality and pricing, and sales will take care of themselves.

2. For Honda Motor CEO Takanobu Ito: When is Honda going to re-assert leadership in powertrains? I can still feel what a CVCC engine was like to drive. I can close my eyes and remember the beautiful gearbox on the manual transmission. We just aren't seeing this sort of leadership from Honda anymore, at least not in the U.S.

Are you serious about hybrids or not? The Accord Hybrid was a "non-starter." And the new Insight is a yawn, even for a hybrid. Are you serious about EVS, or not? You said you were going to bring a diesel engine - your wonderful diesel sold in Europe - to the States, only to kill the idea. I would suggest that there is no sound business case to be made for General Motors bringing out the Chevrolet Volt extended-range electric. But the fact that it did shows that the company is seizing a leadership position trying to change the story about how we drive.

And your design department? Have you looked around a Honda showroom lately? The Ridgeline is a bust. The Element was close to a bust. The CR-Z is a puzzle whose early sales suggest it's a bust, too. I can't find any reason to tell someone they should put it on their list. The Accord Crosstour is not awful, but that's the best I can say. Yes, you own the subcompact crossover market with the CR-V. The Accord is the Accord. The Civic remains strong, but we want a five-door variant back in the showroom. The Odyssey is a pleasure among minivans. But there some big misses here for every hit you turn out.

But most of all, we want something from Honda we can get psyched about. What do you have to say?

Click through to the jump for more questions.

Continue reading Five questions we're asking auto execs at the start of 2011. What are yours?

Five questions we're asking auto execs at the start of 2011. What are yours? originally appeared on Autoblog on Mon, 03 Jan 2011 19:29:00 EST. Please see our terms for use of feeds.

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VW board votes to keep Winterkorn as CEO through 2016

Noah Joseph — Mon, 03 Jan 2011 10:32:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Volkswagen

In a vote of confidence in his abilities, the Volkswagen Supervisory Board has elected to extend Dr. Martin Winterkorn's contract as the group's chief executive through 2016.

The German auto giant's management structure works a little differently than most corporations in the United States, with a supervisory board acting essentially like a board of directors, and a management board serving as the executive body. Therefore, the role that Winterkorn has occupied for four years now and will continue to fill for the next five is that of Management Board Chairman.

The extension of his current contract, which was not due to expire until the very end of 2011, creates some stability in an expanding empire that has very public aims to become the largest automaker in the world. Official announcement after the jump.

[Source: Volkswagen]

Continue reading VW board votes to keep Winterkorn as CEO through 2016

VW board votes to keep Winterkorn as CEO through 2016 originally appeared on Autoblog on Mon, 03 Jan 2011 10:32:00 EST. Please see our terms for use of feeds.

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Volkswagen CEO Winterkorn sticks around

Zach Bowman — Fri, 10 Sep 2010 08:29:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Volkswagen

The powers that be at Volkswagen have elected to keep Martin Winterkorn, the company's current CEO, on board for at least a few more years. Winterkorn has been instrumental in the German manufacturer's march toward global domination, and is looking to complete a merger with Porsche to become the world's number one automaker.

The 63-year-old executive has already brought a number of changes to the company, including adding Scania AB, a Swedish truck manufacturer, to the corporate stable. According to The Detroit News, Winterkorn is also planning to build two more manufacturing facilities in China in a bid to double production in that country.

Likewise, Winterkorn was instrumental in making the decision to open a new facility here in the U.S. That Chattanooga, Tennessee facility represents a billion-dollar investment for Volkswagen and is slated to produce a range of new models tailored to fit American tastes.

Combined, these three plants are poised to help Volkswagen reach its goal of beating Toyota in both sales and profitability by 2018.

[Source: The Detroit News]

Volkswagen CEO Winterkorn sticks around originally appeared on Autoblog on Fri, 10 Sep 2010 08:29:00 EST. Please see our terms for use of feeds.

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Will a lack of U.S. leadership derail VW's ambitious sales plan?

Chris Shunk — Tue, 20 Jul 2010 10:58:00 EST

Filed under: Hirings/Firings/Layoffs, Volkswagen

2011 Volkswagen Jetta - Click above for high-res image gallery

Volkswagen has big plans for the U.S. auto industry. By 2018, The People's Automaker plans to sell a combined one million VWs and Audis per year; or about three times current sales numbers. VW has a plant in Tennessee that will build a planned 150,000 midsized sedans per year and a new, lower cost Jetta is expected to nab more of the coveted C-segment pie. The automaker plans to turn a profit here in the States by 2012 or 2013, a full decade after the last profit in 2002.

Like we said, VW has set the bar very high, but there's a big problem. The German automaker currently doesn't have a leader here in the U.S. Stefan Jacoby, a 25-year vet at VW, stepped down last month, leaving a thoroughly-engineered vacuum at the top of VW's U.S. org chart. VW CEO Martin Winterkorn, who reportedly planned to detail the company's road map to prosperity at a Jetta test drive on Monday, still hasn't named a North American CEO.

We don't make cars, but we're pretty sure if you want to triple sales in eight years it's a great idea to have strong leaders in place. We have little doubt VW will eventually find a suitable replacement for Jacoby, but whomever gets the job is going need broad shoulders for all the weight that's going to be placed on them.

[Source: Business Week]

Will a lack of U.S. leadership derail VW's ambitious sales plan? originally appeared on Autoblog on Tue, 20 Jul 2010 10:58:00 EST. Please see our terms for use of feeds.

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Volkswagen reconfirms EVs for 2013, next-generation vehicles to reduce weight

Damon Lavrinc — Tue, 20 Jul 2010 09:31:00 EST

Filed under: Hatchback, Volkswagen, Electric

Speaking outside its Electronics Research Lab in Palo Alto, California, Volkswagen chairman Dr. Martin Winterkorn reconfirmed the automaker's commitment to bring electric vehicles to market in 2013, beginning with the eGolf compact and eUp! city car.

Drawing a faint parallel to the original Beetle, Winterkorn told the assembled media that "Volkswagen is working on the electric car for everyone." And one of the first electrified V-Dubs will be its bread-and-butter Golf hatchback.

"The automotive industry is reinventing itself," Winterkorn continued, "and Volkswagen will be the first automaker to mass produce the electric car for everyone." VW believes that electric vehicles are the next great revolution in the automobile, and in order to achieve its goal of becoming the world's top automaker by 2018, it believes it has to dominate the EV segment.

In addition to bringing two EVs to market in the next three years, the Touareg Hybrid (shown above) is being produced, with the hybrid Golf and Jetta due later that year and the hybrid Passat following in 2012. All of which VW considers to be interim products.

Although current battery technology has limited the eGolf to a 100-mile range when fitted with a 26.5 kWh battery pack, Winterkorn asserts that "Our customers are not willing to compromise. They expect the same thing from a standard [internal-combustion engine] Golf as they would from an electric Golf." But until its partnerships with Samsung, Toshiba and other battery manufacturers pan out and develop lighter, smaller, less expensive and higher capacity batteries, they'll have their work cut out for them.

When asked what VW plans to do about vehicle weight, Winterkorn rattled off a litany of advanced materials - from carbon fiber to magnesium - and told Autoblog that the next generation of Volkswagen products will undergo a weight loss program.

[Image: Sean Gallup/Getty]

Volkswagen reconfirms EVs for 2013, next-generation vehicles to reduce weight originally appeared on Autoblog on Tue, 20 Jul 2010 09:31:00 EST. Please see our terms for use of feeds.

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Report: Chung, Mullaly, Winterkorn named top car company CEOs

Jonathon Ramsey — Wed, 14 Jul 2010 17:32:00 EST

Filed under: Ford, Hyundai, Volkswagen

Automotive News has put together its list of 2010 auto industry all-stars, and taking first place in American, European and Asian CEO categories are Ford CEO Alan Mulally, Volkswagen CEO Dr. Martin Winterkorn, and Hyundai-Kia CEO Chung Mong-koo. Hard to fault the choices, and it shouldn't come as a surprise at all that the same three gentlemen took slots two through four of Motor Trend's list of top 50 auto execs for 2009.

Mulally was cited because his "steadfast plan to turn Ford around is bearing fruit in impressive fashion" and Chung was lauded for having " turned the Hyundai brand into a superpower." Winterkorn, who could have been awarded based on VW's Hulk-like growth, was actually noted for his "Strategy 2018," by which time he plans for the VW group to be selling ten million cars per year. Check this spot in eight years to see if he's still an all-star. For now, though, congrats to all.

[Source: Automotive News - sub. req'd.]

Report: Chung, Mullaly, Winterkorn named top car company CEOs originally appeared on Autoblog on Wed, 14 Jul 2010 17:32:00 EST. Please see our terms for use of feeds.

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REPORT: VW finished eating companies, will now focus on digestion

Jonathon Ramsey — Mon, 21 Dec 2009 10:31:00 EST

Filed under: Volkswagen, Earnings/Financials

We have a feeling historians will spending a fair portion of next few years finding new words to describe just how bad this year was for the auto industry. And then, at some point, they'll get around to Volkswagen, a company that has been zagging while almost all others zigged. Over the last twelve months, VW has taken a stake in Suzuki, bought Karmann, won European Car of the Year, won the Dakar Rally, turned its eye to F1, released a litter of well received cars, put autonomous cars everywhere, thrown huge money at hybrids and electric cars, and made recycling fun. And it's building a $125 million dealership in Manhattan. And then there was that whole Porsche thing. And it took the crown of No. 1 automaker. We could continue, but there's a post to finish...

When it comes to mergers and acquisitions, remarks from company CEO Martin Winterkorn suggest that VW is finished doing its impression of 18th century England. "We are satisfied with the current line-up," he has told Automotive News. "I don't see any need (for further M&A activity)." That, in spite of his assertion that other companies "want to come under our roof."

VW will focus on what is sure to be a busy year ahead, integrating Porsche and its interest in Suzuki, at the same time as it gears up Karmann's factory for the Boxster, and builds its U.S. plant and prepares its new NMS model. Winterkorn is expecting VW's market share to increase in 2010, which might solidify a place at the top position; although after the shellacking General Motors and Toyota took while they wore the crowns, we don't know why VW would want the attention. And as for the end of M&A, perhaps Winterkorn hasn't heard the rumor about Piech's eyes on Ducati...

[Source: Automotive News - sub. req.]

REPORT: VW finished eating companies, will now focus on digestion originally appeared on Autoblog on Mon, 21 Dec 2009 10:31:00 EST. Please see our terms for use of feeds.

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Officially Official: VW and Suzuki tie the knot

Jonathon Ramsey — Wed, 09 Dec 2009 07:32:00 EST

Filed under: Suzuki, Volkswagen, Earnings/Financials

As you can see from the image above depicting Osamu Suzuki, chairman and CEO of Suzuki Motor Corp. and Martin Winterkorn, his counterpart at Volkswagen AG, the two auto companies have agreed to link arms. Volkswagen has properly announced that it has "reached a common understanding to establish a close longterm strategic partnership" with Suzuki Motor Corporation. The union means VW will buy 19.9% of Suzuki, then Suzuki will spend half the money they just received from Volkswagen reciprocating by buying VW shares.

Beyond that, Suzuki gains access to VW technology and the comforting warmth of a hugely profitable big brother. Volkswagen gets a nearly turn-key solution to boosting its small car development and piggybacks on Suzuki's presence in India and Southeast Asia. Suzuki, and of course, VW, will remain independent, but unofficial word suggests that VW might increase its stake to 33% or more at some point down the road, which could shift the balance of power.

VW's press release is after the jump, and there will be a press conference and webcast (you'll need a user name and password to watch) at 5 p.m. with more details.

[Source: Volkswagen | Image: Kazuhiro Nogi/AFP/Getty]

Continue reading Officially Official: VW and Suzuki tie the knot

Officially Official: VW and Suzuki tie the knot originally appeared on Autoblog on Wed, 09 Dec 2009 07:32:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #142

Dan Roth — Wed, 26 Aug 2009 10:40:00 EST

Filed under: Podcasts, Ford, Lexus, Porsche, Volkswagen, Volvo, Spyker

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Episode #142 of the Autoblog Podcast is here, this week with the (not very) dynamic duo of Chris and Dan carrying the baton while seemingly the rest of the world is on vacation. We're certainly in the lull before auto show season swings into full effect, but there are still a few things to talk about. Pricing of the VW Golf TDI starts us off before moving on to cover the reportedly tight supply of Lexus HS250h hybrids, which may affect the car's U.S. launch. More excitingly, the possibility of a Lexus hatch is pondered before moving on from Toyota's fancy division. Last week, the podcast touched on the Spyker Aileron, and this week we went after the D8 Peking-to-Paris model in all its resplendent over-the-topness. Speaking of dramatic cars, we wrap up with the news that there may be three new Porsche models in the works to diversify that maker's line and increase volume. We fish through your questions before calling it a night a bit past the hour mark.

A hearty "thank you" goes out to our listeners for all of your great reviews - your efforts got us featured on iTunes this week, and we appreciate it. You can join in the fun (if you haven't already) by leaving a review at iTunes, filling out our survey, or emailing us with questions/comments at Podcast at Autoblog dot com. See you next week!

Continue reading Autoblog Podcast #142

Autoblog Podcast #142 originally appeared on Autoblog on Wed, 26 Aug 2009 10:40:00 EST. Please see our terms for use of feeds.

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Volkswagen Golf Mk VI not U.S.-bound?

Alex Nunez — Sun, 15 Jun 2008 12:21:00 EST

Filed under: Hatchback, Volkswagen

Germany's Spiegel Online is reporting that currency concerns will force Volkswagen to not sell the upcoming Mk VI Golf in the United States, Brazil, and Australia. It all boils down to profitability, and it appears that the forthcoming Golf simply cannot be sold in our market (or Brazil or Australia) in the current economic climate without falling short of VW's targets. Thus, Spiegel reports that VW boss Martin Winterkorn told a meeting of the board that the next Golf won't make an appearance here in the States, period. The original article (in German) is here, and any German-speaking readers are welcome to add clarity to the report in the comments below.

In the US, the Golf (Rabbit) family is VW's second-highest seller behind the Jetta. If this drastic measure does indeed come to pass, we're left wondering what, if anything, would fill that void. Would the current Mk V soldier on, much in the same way VW continues to offer the Mk IV in markets like Canada under the City moniker? This is going to be an interesting story to follow, regardless of what ultimately transpires. Thanks to all who sent tips.

UPDATE

[Source: Spiegel Online (Translated)]

Volkswagen Golf Mk VI not U.S.-bound? originally appeared on Autoblog on Sun, 15 Jun 2008 12:21:00 EST. Please see our terms for use of feeds.

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VW CEO threatens to resign if Porsche interferes

Dan Roth — Mon, 02 Jun 2008 11:01:00 EST

Filed under: Etc., Europe, Audi, Porsche, Volkswagen

It looks like Porsche's aggressive advances at Volkswagen are less than welcome by Volkswagen's management. Its CEO, Martin Winterkorn, has warned Porsche to keep its mitts out of operations, saying that he will resign his position if there's interference. Winterkorn isn't alone in his agitation, as Der Spigel reports Audi managers are concerned that Porsche will go a-meddling in Ingolstadt once its stake increases above 50 percent. Though VW, Audi, and Porsche are all cousins of a sort, Audi's product line comes uncomfortably close to Porsches in some cases, which doesn't portend well for the continuation of the status quo. Stay tuned as "Alle Meine Kinder," brought to you by Dr. Ferdinand Porsche, continues.

[Source: Forbes, Photo by MICHAEL KAPPELER/AFP/Getty]

VW CEO threatens to resign if Porsche interferes originally appeared on Autoblog on Mon, 02 Jun 2008 11:01:00 EST. Please see our terms for use of feeds.

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Coming to America: VW Polo may come stateside

Dan Roth — Tue, 15 Jan 2008 18:29:00 EST

Filed under: Budget, Europe, Volkswagen

Click image for a hi-res gallery of VW Polos

"Do you need the Polo?" That's going to be Volkswagen chief Martin Winterkorn's query to US dealers when he meets with them this week. The answer could determine whether or not we see a sub-Golf sized VeeDub here in the United States. Rising fuel prices have made small cars big again, and VW's taking a hard look at capitalizing on that. The inrush of Volkswagen's competitors to smaller models also makes the segment hard to ignore. BMW's got the hotly anticipated 1-series, Daimler's trend-tastic Smart has been foisted upon us, Saturn's slick Astra is nearly here, and Ford's threatening to give us the Fiesta in a couple of years, too. If we were a VW dealer, our answer to Winterkorn would be a resounding "YES!"

[Source: Auto News - sub req]

Gallery: Volkswagen Polo

Coming to America: VW Polo may come stateside originally appeared on Autoblog on Tue, 15 Jan 2008 18:29:00 EST. Please see our terms for use of feeds.

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New strategy for Seat appeals to wider base

Noah Joseph — Wed, 14 Mar 2007 19:29:00 EST

Filed under: Volkswagen, Earnings/Financials

Having unique character might be good for enthusiasts, but it's not so good for the bottom line, and Martin Winterkorn is more concerned about the latter. That's why the CEO of Volkswagen AG is planning on remaking its struggling Seat brand in a new mold.

Although not offered in the North American market, overseas buyers know Seat by the "auto emocion" moniker, positioning the Spanish carmaker as the group's sportier subsidiary offering more aggressive-looking models compared to the more traditional images of the Volkswagen and Skoda divisions (Hmm, sounds like the European version of Pontiac). Unfortunately, that strategy hasn't seemed to pay off for Seat, and to keep it in the black, Winterkorn is ordering a change of strategy that involves appealing to a wider customer base and cutting ten percent of its workforce.

We can't help but wonder what Seat will have to offer if it's brand image is tossed aside. But treading on each other's turf seems to be the strategy du jour at Volkswagen group, where VWs go upmarket to compete with Audis and the corporate structure includes three ultra-premium brands. Whether Winterkorn's strategy pays off remains to be seen.

[Source: Just-Auto]

New strategy for Seat appeals to wider base originally appeared on Autoblog on Wed, 14 Mar 2007 19:29:00 EST. Please see our terms for use of feeds.

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VW post-Bernhard getting major changes

Dan Roth — Fri, 19 Jan 2007 09:34:00 EST

Filed under: Etc., Europe, Volkswagen

Audi has raided the castle at Wolfsburg and changes are in store. New boss Martin Winterkorn has ordered that the new Scirocco, Golf and Passat be presented for scrutiny. Rounding out the new royal court at Volkswagen will be a coterie of raiders from Ingolstadt, among them Walter de'Silva. de'Silva will be tweezing the look of the new cars until Winterkorn is satsified. Also, the petrol-powered V10 returns to the Touareg, giving back a unique offering and hopefully enticing sales. We're not sure what Mr. Winterkorn doesn't like about the styling of the new cars, but we're hopeful that de'Silva will be allowed to stretch his legs and stun us when the re-designs start trickling out. As Winterkorn consolidates and centralizes power in Wolfsburg, we're sure to see bigger changes coming out of Volkswagen and its brands. We're all for it - what's the worst they can do, screw up? Judging from de'Silva's portfolio, that's not bloody likely.

[Source: Germancarblog]

VW post-Bernhard getting major changes originally appeared on Autoblog on Fri, 19 Jan 2007 09:34:00 EST. Please see our terms for use of feeds.

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New VW chief to create PAG-like group for luxury marques

Noah Joseph — Mon, 13 Nov 2006 16:48:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Audi, Bentley, Bugatti, Lamborghini, Volkswagen

The latest news in the regime change at Volkswagen is that incoming group chief Prof. Martin Winterkorn is planning some big changes in management structure across the entire corporate spectrum.

Although several don't operate in the US market, Volkswagen AG has grown to GM-like proportions in the number of marques under its umbrella. However, rather unlike GM and other auto-making conglomerates, Volkswagen group members don't cooperate as much in the development of new products. (The Volkswagen and Audi brands, for instance, will often develop separate vehicles with different engines, sometimes even competing against each other, but which could be combined into one project.) As Audi chief, Winterkorn can't have been happy to see Volkswagen stealing any of its market share.

Winterkorn plans on changing all that, placing the group's marques into two categories: volume and premium. Like Ford's Premier Automotive Group (which includes Volvo, Land Rover, Jaguar and Aston Martin), VW's new "premium" group will include Audi, Bentley, Lamborghini and Bugatti, while the "volume" group will include Volkswagen, Seat and Skoda. All this should mean better products offered in more packages at lower costs with reduced development times. And that's something any car buyer could appreciate.

What else can we expect from Winterkorn? It's doubtful he'd be willing to throw as much resources behind Bugatti as did his predecessor, but as we can see from Audi's diesel-fueled domination at Le Mans, he evidently believes in the benefits of racing.

Related posts:

[Source: Motor Authority]

New VW chief to create PAG-like group for luxury marques originally appeared on Autoblog on Mon, 13 Nov 2006 16:48:00 EST. Please see our terms for use of feeds.

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Did Porsche, Piech punt VW CEO?

Stuart Waterman — Thu, 09 Nov 2006 07:54:00 EST

Filed under: Hirings/Firings/Layoffs, Audi, Porsche, Volkswagen

The surprise resignation of Volkswagen CEO Bernd Pischetsrieder may have been orchestrated by VW Chairman Ferdinand Piech (grandson of Ferdinand Porsche) and major VW shareholder, Porsche.

Analysts have long speculated that Piech was grooming Audi CEO Martin Winterkorn as Pischetsrieder's replacement, while Porsche's 20-percent holding in VW saw Porsche CEO Wendelin Wiedeking gain a seat on the VW supervisory board, alongside Porsche's CFO.

Tuesday's move has analysts speculating that Porsche may expand its influence over VW by increasing its stake enough to gain a third board seat, with some investment bankers going so far as to suggest that Porsche may attempt to buy VW outright, or to swap its stake in VW for control of Audi.

[Source: Automotive News - reg. required]

Did Porsche, Piech punt VW CEO? originally appeared on Autoblog on Thu, 09 Nov 2006 07:54:00 EST. Please see our terms for use of feeds.

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Audi awards Q5 production to Germany

Chris Paukert — Sat, 20 May 2006 09:04:00 EST

Filed under: Plants/Manufacturing, Crossover, Audi

Audi's next salvo in its rapidly expanding softroader arsenal, the Q5, will be built in Ingolstadt, Germany. The announcement came this week, courtesy of Audi's Chariman of the Board, Dr. Martin Winterkorn. Production of the new model is expected to commence in 2008, involving about 1,700 workers. The decision is being touted by the automaker as an important demonstration of their commitment to their assembly operations in Germany. This is the second sign of the automaker's investment in its motherland, as Audi announced not long ago that its coming R8 supercar is to be build in Neckarsulm, a German city near Stuttgart.

[Source: DueMotori.com]

Audi awards Q5 production to Germany originally appeared on Autoblog on Sat, 20 May 2006 09:04:00 EST. Please see our terms for use of feeds.

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