Concern Volkswagen decided to change the form of management in different marketsJune 25, 2018
The German concern introduces innovations in the management of markets in various countries. So, now the various brands that are part of the Volkswagen holding will independently manage the local market. Priority will be chosen based on popularity.
Volkswagen announced the beginning of changes in the international management of the holding company. Now the largest head office of one of the brands in the group will be responsible for the operation of the whole holding in a certain market. This applies to countries and regions located outside Europe (the head office of Volkswagen will naturally answer for Europe).
As the new head of the group, Herbert Diss, said, such decentralization of management will speed up the adoption of decisions within the same region, and as a result, the German giant will be more flexible and efficient.
For example, Volkswagen will continue to be responsible for the markets of the Americas, South Africa, as well as for China’s volatile and specific market, now considered the largest and most developing.
Seat will be responsible for the North African market. The territory of Russia and India will be led by Skoda. Thus, the Skoda management will decide on the presence of a particular model in Russia, determine the pricing policy, and decide which models should be removed from the market and which ones should be brought back. In the Indian market, Skoda will head the project India 2.0, which provides for the creation of local models for the specific needs of the local market.
How exactly this will affect the holding’s policy is still unknown. It is possible that all brands of the holding company will begin to develop actively, and internal competition will be minimized in each specific market. Such a scheme allows to speed up decision making as much as possible, but the full list of authorities has not yet been announced.
Meanwhile, Ford and Volkswagen are exploring the possibility of creating an alliance, within which they will work on commercial vehicles. Both companies highly appreciate the possibilities of unification.