Audi takes control of Bentley; Lamborghini and Ducati remain part of Volkswagen Group

KUALA LUMPUR: As we know that the Wolfsburg-based Volkswagen Group continues the restructuring of its brands involving takeovers, acquisitions, and stock market listings. Led by CEO Herbert Diess, the restructuring aims to shift the group’s emphasis on electrification and autonomous vehicles, and related tech in a quest to take on Tesla's domination in both categories.

So far, we have heard the rumors of Rimac buying Bugatti, Bentley becoming a subsidiary of Audi as well as initial public offerings of the Italian divisions - Lamborghini and Ducati. Well, yesterday the conglomerate had its annual meeting, where the Supervisory Board announced its decisions on some of these discussion topics.

As expected, the Board confirmed that the British luxury car brand Bentley, which is currently under the supervision of Porsche’s CEO, Oliver Blume will be a subsidiary of Audi AG from March 1, 2021. This structural move will enable "for synergies to be achieved as part of the electrification strategy of two premium brands."

This will also reduce the group’s fixed costs as well as material costs; the board voted for a 5% and 7% reduction, respectively, in the next two years. 

Moving further, the board has also decided the fate of Italian brands. Although it did not say much about that and just made a statement that they will "remain part" of Volkswagen AG, refuting the rumors of their sold or spun-off. Also, nothing has been spoken about the current status of the Lamborghini Aventador successor, which is expected to hit the roads sometime next year.

Diess also won over the VW Group’s union influence securing the future of its EV programs, only at the cost only of basing the electric vehicle development centre in Germany. The Supervisory Board unanimously supported his EV strategy, "in particular the orientation of the company towards electromobility and digitalization.

"Over the coming years, the executive board will implement this strategy under Herbert Diess' leadership," the board stated.

Also read: Meet the new one-off Lamborghini art car, the Aventador S