WOLFSBURG - Volkswagen group will split itself into two major car divisions later this month and will appoint two executives to run the multi-brand units.
At its November 23 meeting, the VW supervisory board will form a 'sporty' or 'southern' brands division that will include Audi, Lamborghini and Seat, say company sources.
A 'classic' or 'northern' brands unit will include Volkswagen, Skoda and Bentley.
Bugatti will remain a standalone brand.
A third unit will be created for VW's light commercial vehicles and for expansion in the heavy truck business - but at a later date.
Contenders for the job as head of the Audi, Lamborghini and Seat group are Martin Winterkorn and Herbert Demel. Winterkorn is currently head of product development for Volkswagen group. Demel is president of VW Brazil and a former chairman of Audi.
According to one scenario under consideration, Demel would run the 'southern' group and Winterkorn would replace Audi Chairman Franz-Josef Paefgen.
Despite speculation that Paefgen will take Winterkorn's job as VW group's head of research and development, most insiders now expect him to leave VW.
One source said Paefgen will head a supplier company after an interim position at the famed Aachen Technical University in Germany.
Seat Chairman Bernd Pischetsrieder will succeed Ferdinand Piech as VW group management board chairman next April.
Pischetsrieder is expected to bring in Seat marketing director Jorn Hinrichs to lead VW marketing. Seat Chief Financial Officer Lars-Henner Santelmann is expected to replace Bruno Adelt as VW group CFO, though not immediately.