Volkswagen, the German luxury auto maker, is pacing up its Strategy 2018 with widespread structural and administrational rearrangements. Prof. Dr. Martin Winterkorn, CEO, Board of Management, quoted, “Our company has grown strongly and become more international in recent years. This fundamental reorganization is the right response to the increasing challenges. At the same time we are laying the foundations for keeping the Group and its brands on their successful course even in a difficult market environment.”
The above continued with the consent of Supervisory Board at an extraordinary meeting. In the belt of restructuring, the Group level will set up a new Board of Management for “China”, which will, demonstrate the importance of largest market of the world in terms of sales. During fiscal 2011, the company delivered around 2.3 million vehicles in China and marked a pro rata operating profit of € 2.6 billion from the region. Prof. Dr. Jochem Heizmann, recent member of Group’s Board of Management who accounts for “Commercial Vehicles”, will supervise the new task of the company.
In recent years, the commercial vehicle segment of Volkswagen has emerged as the second sturdy pillar for the company. In the guidance of Leif Östling, the auxiliary arrangement of “Commercial Vehicles” operations in Board of Management has led the way for close circuit between the Scania, MAN and commercial vehicles of Volkswagen. The relation between the mentioned above will influence the joint power and connect the considerable growth prospective of this segment throughout the world.
In the proceedings of his new operations, Leif Östling, President and Chief Executive Officer, Scania until August 31, will be helped by managers from Scania, MAN and Volkswagen. Besides these parameters at Group level, the Group will also employ other significant modifications at the brand level. Dr. Georg Pachta-Reyhofen, Chief Executive Officer, MAN SE will continue his operations as an associate of Executive Committee of Volkswagen Group and will account for extra accountability for the synchronization between MAN Power Engineering and industrial engines business. Anders Nielsen, recent Head of Production and Logistics, Scania Executive Board, will turn out to be the Chief Executive Officer of MAN Truck & Bus AG. Along with these, Martin Lundstedt, present Head of Franchise and Factory Sales of the Scania Executive Board will emerge as Chief Executive Officer of Scania.
The present member in Board of Management for Technical Development at ŠKODA, Dr. Eckhard Scholz is appointed as Speaker for the Board of Management in Volkswagen Commercial Vehicles, Hanover. He will be also accounted for responsibility of Technical Development at the Group. Dr. Frank Welsch is a new member in Board of Management for Technical Development at ŠKODA, who is currently titled as Head of Bodywork Development at Volkswagen brand.
The present speaker in Board of Management of Volkswagen Commercial Vehicles, Dr. Wolfgang Schreiber is employed as Chief Executive Officer and Chairman of Bentley Motors, Crewe and President in Bugatti. The President of Bugatti and CEO of Bentley, Wolfgang Dürheimer has shifted to Audi in Ingolstadt and has been appointed as the member of Board of Management with accountability for Technical Development. At the same point of time, Luca de Meo, the present Head of Marketing, Volkswagen Group and the Volkswagen brand has been appointed as Audi’s Board of Management for Sales and Marketing. The existing Head of New Product Start-ups, Volkswagen Group Purchasing, Dr. Bernd Martens has overtaken as the part of Board of Management with accountability of Audi’s purchasing. All the mentioned and further entitlements will effect from 1st September 2012.
The Group has titled all the engagements for Board of Management by selecting senior managers from the company, which consist three female top hierarchy managers who will presume their accountability at the level of brand board of management. Making the situation simpler, Dr. Horst Neumann, Board of Management, member for Human Resources, said, “We are delighted that our Group has become a sought-after address for the best brains in the automotive industry. Thanks to our focussed recruitment drive of recent years, we have put together a top management team in the auto business. With the present changes, we have drawn on our own resources to further strengthen cross-brand international links and cooperation among management.”
Addressing the future modifications, Prof. Dr. Martin Winterkorn quoted, “Our clear goal is to continue our successful course of recent years with great momentum and stability. I am convinced that now more than ever, the Volkswagen Group has the right people in the right positions to make our Strategy 2018 a success.”
Further, Winterkorn recalled the unaffected principles of company’s management and said “The multi-brand strategy is, and will remain, the foundation of Volkswagen’s success. All brands have a high degree of operational autonomy and responsibility. At the same time, we are now further intensifying knowledge transfer and management links within the Group. That is how we can leverage synergies and consistently harness growth opportunities – to the benefit of each individual brand and the Group as a whole.”
As a part of mentioned changes in the representative body of Volkswagen, Skoda’s Board of Management will also account for changes, with effect from 1st September 2012. Skoda is planning to make changes to its management board as well in the wake of recent reshuffle in the same of the Volkswagen Group. The technical development at the board level will lead by Frank Welsch. He is preceded by Eckhard Scholz, who as a speaker of the Board of Management will head the commercial vehicle unit of Volkswagen i.e. Volkswagen Nutzfahrzeuge. The Sales and Marketing department will be headed by Werner Eichhorn who will be also considered as a part of Skoda Board of Management. Before Eichorn, it was headed by Jürgen Stackmann, who will now serve as Head of Marketing for Volkswagen Group and the Volkswagen brand and relocate to Wolfsburg to serve at VW Headquarters.
Previously leading the overall vehicle development in Volkswagen's development department, Frank Welch will now spearhead the Development Body Design. In 1994 Frank Welsch, who is an engineer, started his career in research and development at Volkswagen group. Later he was promoted as Head of Product Development at Volkswagen Shanghai and went to China. He will be succeeding Eckhard Scholz as head of development. Scholz is quite influential within the brand having designed the ŠKODA Rapid and the ŠKODA Citigo in the largest ever model expansion ever, adding to the portfolio. In his times, Skoda set the bars in space, features and value for money in cars along with a new design culture. The brand is planning to launch a new model in every six months on an average in the coming years.
Werner Eichhorn’s last served as Head of Volkswagen Sales and Marketing in Germany. This sales professional started with Volkswagen group 31 years ago, after gaining experience in Volkswagen and Audi across various functions, which includes Managing Director of Audi Division FAW-VW, China. He will be taking over from Jurgen Stackmann, who played key role in Skoda's growth strategy as he designed and implemented it. A complete fundamental brand repositioning its logo to the dealership's design is credited to Stackmann.
The achievement of both the departing member in the company was acknowledged by Winfried Vahland, Chief Executive Officer, Skoda, as he said, “Eckhard Scholz and Jürgen Stackmann are inseparably linked with ŠKODA’s growth strategy. Successfully expanding our model palette and strengthening our sales activities make up two crucial pillars of ŠKODA’s strategy for the future. We will resolutely continue on this course with the help of Werner Eichhorn and Frank Welsch.”
