VW eyes new structure

June 26, 2001 Posted: 1246 GMT

NEW YORK (CNNfn) -- Volkswagen AG, Europe's second-largest automaker in terms of sales, is mulling reorganizing into three divisions, according to a published report Tuesday.

The VW Beetle, VW's best-known vehicle.

Robert Buechelhofer, the VW board member in charge of sales and marketing, is quoted in the Wall Street Journal as saying the company still is far from any final decision on the new structure. What is being considered is a division for mass-market vehicles, one for luxury makes and one for commercial vehicles.

The report says that luxury unit would include VW's Audi, Bugatti, Bentley and Lamborghini. The mass-market division would include some but not all of the VW models as well as its Skoda and Seat cars sold in Europe.

Buechelhofer also is quoted as saying VW is on track this year to top the 5.2 million vehicles it sold last year.

The Journal said VW Chairman Ferdinand Piech told a German newspaper last week he favors a simplification of VW's organizational structure.

Last month, the Journal reported that Piech was considering a spinoff of the Audi unit as way to protect the company from takeover if the European Commission is successful in repealing a Germany law that specifically prohibits any investor from owning more than 20 percent of VW.

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