Tighter Grip
The Volkswagen Group is doing everything it can to bounce back from a tough 2025. With many of its brands seeing sharp drops in profits, the company is pulling out all the stops to turn things around. That includes the mothership in Germany tightening the reins in crucial markets, North America included.
Volkswagen of America will soon be getting a new CEO, but that’s not the only change Germany will be imposing on North American operations. VW Group CEO Oliver Blume will also be keeping a closer eye on how things are run stateside.
A New Chief
One of the first moves under greater Wolfsburg control is the assignment of a new CEO for VW of America. Kjell Gruner is out and will leave the company, and in his place will be Marco Schubert. Schubert is currently the head of sales and marketing for Audi and is a board member of the Volkswagen Group.
As head of sales and marketing, Schubert’s next role sees him pumping numbers up for Volkswagen of America, not just in terms of volume but also in margins. We should expect more noise coming out of VW once he takes the helm, and noise is exactly what the American operations of the brand needs right now. Also, as a board member, he will be working even more closely with group CEO Blume.
Audi
Blume’s Focus, Schubert’s Challenges
According to Automotive News, the change in leadership was triggered by the overspending during the Atlas development. It’s said to be the very reason why Blume will be keeping a closer eye on North American operations, and that division was largely responsible for that SUV. As the group aims to curb spending and boost revenue, cost overruns are absolutely off the table.
The report mentioned that Blume is tightening the budget by exercising spending discipline, simplifying vehicles, and streamlining operations by centralizing functions. It won’t be easy, but Schubert was chosen to lead VW of America for a reason. That said, the incoming CEO has other brands to look after, namely Audi and Porsche, which have been taking tariff hits, and Scout Motors, whose rollout has been hit by one issue after another.
Possible Strategies
If possible, Schubert has to find ways to get some of Audi’s most popular models built in the U.S in order to curb tariff penalty payouts. He should also be instrumental in finally getting Scout Motors off the ground within his tenure.
He could hit two birds with one stone by getting cars such as the Q5, Q7, and the primarily made-for-America Q9 built in Scout Motors’ future plant in Blythewood, South Carolina. That way, VW can recoup more of its investment in that facility at a faster rate, provided it all works out. The company could also maximize the Chattanooga, Tennessee plant by building more models there aside from the Atlas and Atlas Cross Sport.
Of course, nothing is set in stone at the moment, and these are merely possibilities and not action plans. We will see how Schubert steers the ship, not just for VW, but with Audi, Porsche, and Scout in tow.
Adam Lynton / Autoblog
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