Audi Overseeing All R&D Work for VW Group

Head of the Pack

Audi is a technology leader in the automotive world, as well as in the Volkswagen Group, which includes the likes of Porsche, Bentley, and other notable marquee brands. So it's really no surprise that VW recognizes this and recently moved to make Audi the lead brand on research and development for the entire VW Group under the leadership of CEO Markus Duesmann, the conglomerate recently announced.

Photos: Audi

Exploiting Advantages

"It is exactly the right way not to stick to the organizational status quo, but to consistently exploit the advantages of the Group's network," outgoing Audi CEO Bram Schot said in a statement. "With a greater job split at the Group, we can manage future issues more agilely and flexibly." Audi U.S. added in a statement that the new plan will "simplify processes, reduce administrative expenses, and streamline our structures, thus increasing efficiency and flexibility. Audi will remain independent as a company and a brand."

Photos: Audi

>>Join the conversation about Audi taking the reins for VW Group right here in Audiworld.com.

Splitting the Costs

The first major change under this new initiative is to centralize VW Group's software development at Audi's headquarters in Ingolstadt. There, the brand is working on its new Car Software organization with a goal of increasing the in-house share of software development to 60+ percent by 2025.

Photos: Audi

>>Join the conversation about Audi taking the reins for VW Group right here in Audiworld.com.

Major Role

Of course, Audi has long played a major role in technological developments for other VW Group brands. For example, the automaker worked in tandem with Porsche to develop its new premium electric vehicle platform, which will wind up underneath not just Porsche and Audi models, but also future Bentley vehicles.

Photos: Audi

>>Join the conversation about Audi taking the reins for VW Group right here in Audiworld.com.

Stay Independent

As part of this process, Volkswagen Group will take over the 0.36 percent of Audi's shares that are publicly traded, increasing its shareholding in Audi to 100 percent. Regardless, AUDI AG will continue to be a stock corporation. It will retain a legal form compatible with the capital market and employee co-determination will remain unaffected. "As Audi’s employee representatives, we fought for and achieved this goal," said Peter Mosch, Chairman of Audi’s General Works Council. "The brand will therefore continue to be independent within the Group."

Photos: Audi

>>Join the conversation about Audi taking the reins for VW Group right here in Audiworld.com.

Technical Leadership

"Given the strong dynamics of change in our industry, we are pooling our strengths in the Volkswagen Group and positioning ourselves competitively for the future, said Dr. Herbert Diess, Chairman of the Board of Management of Volkswagen AG and Chairman of the Supervisory Board of Audi AG. "Going forward, the Audi brand with Markus Duesmann as its new CEO will take over the lead for research & development in the Volkswagen Group and thus swiftly assume technical leadership."

Photos: Audi

>>Join the conversation about Audi taking the reins for VW Group right here in Audiworld.com.

Smart Move

Essentially, VW is doing the smart thing here by letting Audi take the lead. The brand has proven more than capable of helping the group's other brands take the next step into the future, and it's really a no-brainer to put them in a better position to do exactly that.

Photos: Audi

>>Join the conversation about Audi taking the reins for VW Group right here in Audiworld.com.

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