Volkswagen Group's strategic adjustment is more important to China's business


[June 2, 2012, Wolfsburg] Volkswagen Group announced a large-scale management adjustment in order to advance the "2018 Strategy." Prof. Dr. Martin Winterkorn, Chairman and CEO of the Group Management Board, said: “In the past few years, Volkswagen Group has achieved strong growth and has become increasingly internationalized. This time, major adjustments were made to meet the increasing challenges. At the same time, we will also prepare for the Group and its brands to ensure that they will continue to be successful even in difficult market conditions.” The supervisory board of the Group approved the management adjustment at the interim meeting on June 2.

In accordance with the adjustment plan, Volkswagen set up a functional department responsible for the Chinese business at the level of the Group Management Board, highlighting China's position as the world's largest auto market. In 2011, the Volkswagen Group delivered nearly 2.3 million vehicles in China and achieved an equity operating profit of 2.6 billion euros. Prof. Dr. Jochem Heizmann, a former member of the Group Management Board responsible for the commercial vehicle business, became the head of the new department, leading the Group’s business in China.

In recent years, commercial vehicles have become another pillar business of the Volkswagen Group. After adjustment, the current Scania CEO and President Leif Östling will be a member of the Group Management Board from August 31st, responsible for the commercial vehicle business, which will promote the commercial vehicle brands MAN, Scania and Volkswagen commercial vehicles of the Group. Close cooperation between the two countries, complementing each other's strengths and achieving a sustained growth in the global market. The Volkswagen Commercial Vehicle brand will later become part of the Group’s commercial vehicle business. Leif Östling's commercial vehicle business management team will include managers from MAN, Scania, and Volkswagen to promote synergies and close collaboration among companies.

In addition to changes at the group level, some important adjustments have also been made at the brand level:

Dr. Georg Pachta-Reyhofen, in addition to continuing to serve as CEO of MAN, will also become a member of the Executive Committee of Volkswagen Group and head of the Group's industrial engine business and MAN Power Engineering. The current Scania Executive Committee member, Anders Nielsen, head of production logistics, will serve as CEO of MAN Truck and Bus Company, and currently the member of the Scania Executive Committee, distributor and head of sales Martin Lundstedt, will serve as Scania. CEO.

Dr. Eckhard Scholz, who is currently a member of the Skoda Management Board and responsible for technology development, was appointed as the head of the management board of the Volkswagen Commercial Vehicles and also responsible for technology development.

Dr. Frank Welsch, head of body development for the Volkswagen brand, will serve as a member of the Skoda Management Board and will be responsible for technology development.

Dr. Wolfgang Schreiber, currently head of the management board of Volkswagen Commercial Vehicles, was appointed President and CEO of Bentley Motors, President of Bugatti Automobile.

The current CEO of Bentley Motors, President of Bugatti Automobile, Wolfgang Dürheimer, was transferred to a member of the Audi Management Board and was responsible for technology development. At the same time, Luca de Meo, the current head of the Volkswagen Group and the Volkswagen brand market, was transferred to the Audi Management Board to be responsible for marketing. Dr. Bernd Martens, head of new product procurement for the Volkswagen Group, was transferred to the Audi Management Board to take charge of procurement.

Most of the above appointments and related personnel adjustments took effect on September 1, 2012.

All of the newly appointed senior executives of the Volkswagen Group come from within the company. Three of them are also promoted to members of the brand management board. Dr. Horst Neumann, member of the board of directors responsible for human resources management, said: “We are very pleased to see that the Volkswagen Group has become a place where the best talent in the automotive industry is looking forward to. After years of effective talent introduction. We have established a top-level management team in the automotive industry. In this adjustment, we were able to make full use of our internal talent resources to further strengthen cross-brand and international cooperation and cooperation among management teams."

Professor Wen Deen said, “Our goal is to continue to inject growth momentum and maintain stability, continuing the Group’s success in recent years. I’m convinced that Volkswagen Group has the right people in the right positions and we’re sure we can achieve 2018 Strategic success."

Professor Wen Deen also emphasized that the management principles of the Volkswagen Group remain unchanged: “The multi-brand strategy is and will continue to be the foundation of Volkswagen's success. All brands are highly autonomous and at the same time we are strengthening our knowledge within the Group. Only by sharing and managing cooperation can we achieve synergies, achieve coordinated and sustained growth, and ultimately promote the development of all brands and groups."

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