Future organizational structure of the Group

At its meeting on September 25, 2015, the Supervisory Board of Volkswagen AG passed resolutions for restructuring the Company. The Group is to have a new management model, which is being implemented since the beginning of 2016. The main changes are as follows:

At Group level, the management structure will be based even more consistently on the modular toolkit system. In addition to Volkswagen Passenger Cars, SEAT and ŠKODA as the volume brands, Audi, Lamborghini and Ducati will form a brand group and Porsche will be in a brand group with Bentley and Bugatti. The commercial vehicles group with Scania and MAN as well as the Volkswagen Commercial Vehicles brand will remain in place, as will the Power Engineering and Financial Services business areas.

Furthermore, Group functions will focus on efficiency and topics for the future. For this, organizational units will be set up for, among others, digitalization, the toolkit and product strategy, new business fields, as well as cooperation and equity investments.

Existing corporate bodies, structures and processes will be streamlined at Group level, in particular by strengthening the individual brands and regions. The research and development, production and sales functions will be strategically assigned at Group level to the area for which the Chairman of the Board of Management is responsible. The existing responsibilities for these functions in the Group’s Board of Management will be transferred to the new organizational structure.

The reorganization will also result in slight changes to the financial reporting. In the Automotive Division, the Commercial Vehicles/Power Engineering Business Area will in future be presented as two separate business areas in accordance with the segment reporting: Commercial Vehicles Business Area and Power Engineering Business Area. The Automotive Division will thus have three business areas: Passenger Cars, Commercial Vehicles and Power Engineering. The Financial Services Division, which corresponds to the Financial Services segment, will remain unchanged.