Offloading non-core assets will ease VW’s transition into emerging automobile market

Volkswagen’s top management is aiming to transformation the group into a more modern, streamlined company. Although the process is seen as painful, it pays off in the long run.

On Friday, the top leader of Volkswagen’s powerful works council said, it will continue to disallow the potential sale of VW’s non-core industrial assets and will instead suggest steps to increase the carmaker’s commitment to these businesses.

Under former VW chief Matthias Mueller, attempts to slim down VW faced strong headwinds from not only labor leaders but also from the controlling Porsche and Piech families.

Nevertheless, last month, VW’s new CEO Herbert Diess stated, spinning off Renk, Diesel & Turbo, or even motorcycle brand Ducati is potentially on the table as the group’s top management reviews its options for spinning off non-core assets.

“When taking over MAN, (former chairman) Ferdinand Piech and I promised the workforce of Renk and Diesel & Turbo that we will not sell these divisions. The executive board (of VW) also gave its word,” said Bernd Osterloh, VW’s works council chief.

Already Diess is ramping up efforts to list the group’s trucks division for a separate listing.

VW is aiming to become further streamline and become more efficient as it eases into the expensive transformation to self-driven and electric cars.

“We will discuss how we can further develop the engineering operations by means of intelligent solutions,” said Osterloh. “The business must not stand still. We also agree with Dr. Diess on this.”

Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy, Sustainability

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