Wednesday 26th Oct 2016 - Logistics Manager

VW moves on CV supply chain synergies

Volkswagen has taken another step in the integration of its commercial vehicle businesses with the appointment of Leif Östling, Scania’s CEO, to take responsibility for the entire commercial vehicle business on the group’s the board of management. His task will be to leverage the synergies between the Scania, MAN and Volkswagen commercial vehicle businesses.

Volkswagen expects to make savings of up to 200 million euros in its commercial vehicle supply chain – notably through procurement.

The group has now increased its share voting rights in MAN SE to over 75 per cent opening the way to closer integration.

23543 Ostling

The move is part of a major reorganisation of the group under its Strategy 2018 plan. As part of this Volkswagen Commercial Vehicles brand will become part of the Commercial Vehicles business area.

Östling will remain CEO of Scania until 31st August before taking up his new role. He will be supported by a team comprised of managers from MAN, Scania and Volkswagen.

The reorganisation will mean that Anders Nielsen, latterly head of production and logistics at Scania, will become chief executive officer of MAN Truck & Bus AG.

Dr Georg Pachta-Reyhofen, CEO of MAN SE, takes on additional responsibility for the Group-wide coordination of the industrial engines business and for MAN Power Engineering.

Martin Lundstedt, currently Scania’s head of franchise and factory sales will take over as CEO at Scania.

The group was at pains to make clear that MAN would retain its operational autonomy and identity, and MAN Power Engineering would remain a solid part of MAN.

“We will be following our chosen route with the utmost consistency. That is essential for the competitiveness and future viability of MAN, Scania and Volkswagen,” said Volkswagen’s CEO Prof Dr Martin Winterkorn.

At the same time Volkswagen is keeping all options open to further shape an integrated commercial vehicles group going forward.