VW presses on with truck and bus listing


Spin-off comes as group management undergoes major change

VW presses on with truck and bus listing
Herbert Diess is the new VW boss

 

Volkswagen’s structural readjustment has solidified publically, with more detail on its plan to list the Truck & Bus arm and the group’s top executive to step down.

Almost three years after the formation of Volkswagen Truck & Bus — encompassing the MAN, Scania and Volkswagen Caminhões e Ônibus and RIO brands and to which Volkswagen Commercial Vehicles has an associated partner status — the group has confirmed the plan.

"Paving the way for capital market readiness is the next logical step in the successful development of our company," Volkswagen Truck & Bus CEO Andreas Renschler says, a month after news of the move was acknowledged.

"We are now ready to gear up through the achievement of capital market readiness.

"Obviously, this is something that cannot be done overnight.

"We have therefore launched ‘Next Level’, a comprehensive project that has brought together nearly 200 employees who work for all of our brands and in all parts of the world.

"As a team, we will fulfil the requirements necessary to tap additional financing opportunities offered by the capital market.

"In doing so, we can flexibly accelerate the profitable growth of our commercial vehicles business.

"Our customers, employees and the entire Volkswagen Group will benefit equally from this step."

Initially and quickly, the subsidiary is to have its legal structure undergo a two-step change in readiness.

The first is to give it share-ownership and the second, subject to supervisory board approval, is to register it and a European public company.

The ‘Next Level’ project is to focus seven initiatives:

  • brand performance —  further enhancement of brands’ performance with individual identities, strengths and profiles
  • global expansion — further global expansion to leverage scale and be ahead of competition
  • future business models — develop solutions for future transportation (in such areas as autonomous driving and e-mobility)
  • cooperation & synergies — increase cooperation and leverage synergies between brands
  • optimisation of the organisational structure — reassessment of the organizational structure and further development of joint values
  • communications — pursue an active and open communications approach
  • achievement of capital market readiness — meet technical and structural requirements of the capital market.

Meanwhile, the management structure is to be revamped with CEO Matthias Müller stepping down and the supervisory board appointing former brand manager Herbert Diess as his successor.

VW says the introduction of the brand groups Volume, Premium and Super Premium, along with the planned preparation for capital market readiness of Truck & Bus, "create the basis for a more subsidiary leadership of the Group".

So, Diess will be responsible for Group Development and Research, Rupert Stadler for Group Sales, and Oliver Blume for Group Production.

Due to the special significance of vehicle connectivity, Vehicle IT will be led by Diess; Company IT will be headed by Frank Witter.

Procurement and Components are to be combined.

 

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