The Volkswagen Group has announced a new steering model for its Brand Group Core (BGC), which includes the volume brands Volkswagen Passenger Cars, Škoda, SEAT&CUPRA, and Volkswagen Commercial Vehicles. This move is aimed at improving efficiency and competitiveness across these brands.
Starting in January 2026, the newly formed “Brand Group Core Board of Management” will oversee cross-brand decisions. The group says this change is intended to streamline processes, structures, and decision-making within the BGC. The board will manage key functions such as Production, Technical Development, and Procurement at a cross-brand level.
According to the company, one of the first steps in this reorganization will be to reduce the total number of board members within the four volume brands by about one third by summer 2026. Over time, management structures within the Brand Group Core are expected to become even more streamlined.
Volkswagen Group states that this new model will allow for better use of synergies and scaling effects between brands, resulting in cost benefits. Operational activities within the BGC are expected to be implemented more quickly, while strategic areas like software and batteries will remain a focus at the group level. The company also plans to distribute responsibilities more evenly so that regional and specialist expertise can be used where it brings the most benefit.
In terms of production, Volkswagen highlights that reorganizing its steering model could lead to cumulative savings of one billion euros through 2030. The new Future Production Governance model will involve leaner processes across more than 20 production locations worldwide. These sites will be organized into five production regions with regional management responsible for planning, steering, and logistics across both brand and national lines. The Iberian Peninsula was identified as the starting point for this approach, where plants have been grouped into a cross-brand cluster.
Volkswagen describes these measures as essential for achieving long-term return targets. “The approved measures are a key lever for achieving a sustainable increase in BGC’s returns. The new cross-brand steering model with its clearly-defined responsibilities and swift decision-making will boost the competitiveness of the entire Brand Group Core model range,” according to company statements.
The full implementation of this new steering model is expected by summer 2026.
