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Audi brand to be excluded from VW sportscar brand overhaul: source

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(Reuters) - will pool management of all its sportscar brands except for under a planned revamp designed to hike profitability, a supervisory board source said on Thursday.

directors are meeting to discuss making chief and deliberating on the most far-reaching changes since industry scion built the multi-empire, the sources told

Volkswagen's supervisory board wants to reorganise the way passenger car brands, trucks and buses are grouped, in a bid to increase its development and engineering synergies and improve the German carmaker's competitiveness.

said on Thursday it would hold a press conference in on Friday at 0830 GMT. (http://gomexlive.com/vw_live_ag/)

Volkswagen's deliberations come as rival carmakers and suppliers including and work on ways to slim down and divest non-core assets.

Analysts at say there is 160 billion euros worth of "hidden value" in the European autos sector that could be unlocked through portfolio simplifications.

at said a revamp could also prove to be a fresh trigger for deciding what the Wolfsburg-based group's core businesses are.

"There has to be a new attempt at slimming down under the new leadership. The group has simply become too complex, firms like and have only limited value for group business and would be much better placed at different owners," Schwope, who has a 'buy' rating on said.

supervisory board members are discussing the creation of a 'super premium' group which includes sportscar brands Porsche, Bentley, Lamborghini and Bugatti, the source said.

Bavarian luxury car will be excluded from this group and form its own 'premium' division, the source added.

In addition there will be a 'volume' group that includes the brand, Czech division Skoda and Spanish unit Seat, and a 'commercial vehicles' category.

will carve out a trucks and buses division which includes MAN and heavy-truck brands, the source said.

Volkswagen's MAN Turbo and units will also be put into a separate division, the source said.

(Reporting by Ilona Wissenbach, and Irene Preisinger; Editing by Edward Taylor/Keith Weir/Alexander Smith)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 22:48 IST
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