Volkswagen Shuffles Management Responsibilities

Volkswagen announces a number of key changes to its operations and management structure following a decision it says is aimed at “bundling responsibility for its products and strengthening the steering of its business operations.”

Among the changes made public Monday by the German automaker is the creation of a new Digital Car and Services division, which officially will begin operations with a new member joining the Volkswagen management board March 1.

The new division is to act as a software competence center. It will be headed by the former head of Volkswagen’s e-mobility operations, Christian Senger, in a new VW board member post.

Senger, who has overseen the conceptual development of Volkswagen’s new MEB electric-car platform as well as its upcoming range of I.D.-branded electric vehicles, will be responsible for both the Volkswagen brand and Volkswagen Group’s software and mobility concepts.

In addition, Volkswagen Chief Operating Officer, Ralf Brandstätter, is relinquishing his management of procurement activities to assume responsibility for the company’s small, compact and midsize/fullsize product lines, which previously reported to Frank Welsch.

Brandstätter is to assume responsibility for what Volkswagen describes as “value engineering and quality assurance” within the brand. The product safety committee is to remain under the responsibility of Volkswagen CEO Herbert Diess. This change will provide the CEO with greater leeway for shouldering the strategic tasks faced by the Group.

In announcing the management changes, Volkswagen says Welsch “will be able to focus more strongly on his additional function as Head of Group Research and Development and to forge ahead with the development of alternative powertrains, future-orientated assistance systems and sustainable mobility for the brand.”

Welsch, who is credited with the development of recent new Volkswagen models, including the upcoming eighth-generation Golf due to be revealed later this year, has been a member of the Volkswagen board of management with responsibility for Technical Development since 2015.

The management of procurement activities, including the slimming down of internal processes and leveraging of synergy effects, falls under the leadership of former ZF Friedrichshafen CEO Stefan Sommer.