Team-BHP - Volkswagen Group plans to merge all passenger car entities in India

This is not a merger of the brands themselves. It is only that the technical, managerial and product developmental resources will be shared. The brands as such will continue to exist and fight it out in the market. Atleast that is what can be made out from the statement.

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Originally Posted by TusharK (Post 4651916)

The merged company will be called Skoda Auto Volkswagen India Private Limited.

Couldn't a company - that is known for its classy cars - have chosen a more fitting name? What a DUMB sounding company name.

On the other hand, it signifies what we already knew. Skoda now has full control of India operations. VW is on the backseat.

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The merged company will be called Skoda Auto Volkswagen India Private Limited.

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Originally Posted by GTO (Post 4652518)

lol: " Skoda VW India Pvt ltd " sounds better to me. But I think they still want to keep a gap between Skoda and VW so this word Auto is used in between. Wonder, how are they going to merge staff and other processes. Ideally, they should have merged Audi & Porsche in the same group as well and perhaps named simply as 'VW Group India Pvt. Ltd'

There's a famous saying - Ap ka ya Baap ka ( your's or your father's) So as long as VW Germany keeps on sending money here, nothing will change. Why do they need so many senior guys/ CEO for Audi, Porsche, VW/ Skoda?

They can simply have one division for CBU and another for CKD/ Local manufactured like what Toyota does or just one marketing company which gets cars from Germany or elsewhere including India and then distribute, like what BMW does.

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Originally Posted by blackbeast (Post 4652169)

I do not quite like this. I am a huge skoda fan and not a VW fan. Skoda had a better price, features and likable design variations. Would we be seeing a new logo or present logo for the respective brands under same roof

The cars will remain unchanged & so will be the logos on their bonnets and boots. The organization itself is being rationalized & it was inevitable. For the overall market share, investment returns & churn that they are seeing - it makes no financial sense to keep running two legal entities in tandem. It becomes a huge overhead of management, legal matters, infrastructure. Basically a lot of money being sent down the drain on redundant items.

As an example - there will be just 1 senior fellow who gets made fun of altogether, instead of 1 each at VW and Skoda; when they "launch" their respective facelifts henceforth. :D

Instead it will work as a single legal entity in India, streamline most business & legal matters while maintaining an "on ground" facade of 2 car brands. We can safely presume it will mean quite a significant job redundancies over next 1 year in the top-mid management & legal departments.

This was coming. But I see no point in this restructuring being fruitful if they don't launch any new products and not just mild facelifts. Indian car buyers are very well informed these days and if one is to go by the horror stories from Volkswagen owners, the new launches have to be really good with competitive pricing.

I seriously hope they bring the international products like the Polo (MQB) to India. With good A.S.S I am sure their cars will sell.

The only positive thing about this is VAG can leave our shores by winding up just a single company. Hope at least when the time comes for that they shun their usual indecisiveness. When was the last volume seller launched by these guys, if I remember correctly it was 2009! 10 years and not even another launch that could sell in 4 digits. People are paying close to 2 million bucks for Seltos, please don't tell that Indians don't spend money on the right product.

Not even a single mass market car with 6 airbags and you want a premium tag! MRI Brain is very cheap in India, the whole top honchos looking after Indian operations should definitely get one done immediately. It may save quite some money for the group in the long run!

I have given up hope on these incompetent ones to bring out New Polo and Jetta replacement. Renault is at least trying, how can these guys go to sleep everyday, don't they have some conscience?

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Originally Posted by The Rationalist (Post 4653328)

So true. You've perfectly summed it up, these bunch of fools along with the fools from Honda keep complaining but can't launch anything interesting in the market at the right price.

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Originally Posted by TorqueKnight (Post 4651966)

So there won't be any re-badge engineering of cars between the two?. So Rapid and Vento can become 'Ranto'? stupid:

Jokes apart, they should have followed the approach much earlier. Instead of understanding the market and establish the brand they created a sibling rivalry (not in sales but in wasting energy) but they realized the mistake later. Though none of their models were blockbusters their merger would channelize their resource and focus. Now I am more interested in their 2.0 plan.

They need right products and right price but all before that they need to fix their 'After Sales & Service' which still remains a gamble for the customers.

I just hope that Vento+ Rapid do not make it a "Vapid' i.e bland product. They would also have to look at the overlap in Rapid/Vento and Kodiaq/Tiguan, Superb/Passat etc.

Indeed an excellent move to optimize costs and improve customer strategy.

They did not mention about any vehicle changes, but as per the suggestions from many BHPians, there needs clear lineup and non competing range for better offering and enhance service and spares.

Here is the list in my opinion could make it the best line up:
VW Polo
VW Ameo
Skoda Rapid
VW TCross
Skoda Kamiq
Skoda Octavia
Skoda karoq
Skoda superb
VW Tiguan
Skoda kodiaq

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Originally Posted by tirumalavoleti (Post 4658553)

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Here is the list in my opinion could make it the best line up:
VW Polo
VW Ameo
Skoda Rapid
VW TCross
Skoda Kamiq
Skoda Octavia
Skoda karoq
Skoda superb
VW Tiguan
Skoda kodiaq

The Line-up will look like this:

Skoda Octavia
Skoda Kodiaq
Skoda Superb
Skoda Karoq
Skoda Kamiq
Skoda Rapid

VW Tiguan
VW T ROC
VW T Cross
VW Virtus/Vento ( Jetta ?)

VW Polo( tentative)
VW Track ( high probability)

Whats actually amusing is the lack of study such global giants actually carry out when entering India. I'm sure they have black suite wearing Harward graduates literally in thousands across the globe on their payroll. Must be hiring the best business consultants and the Gartners et all for analyzing their entry in a strategic & volume based market.

Yet - they fail miserably. VW Group AG has about 10 brands selling in parallel just in the EU. An area that has lesser or just about equivalent population of India, a single country. Much bigger customer base by numbers (not buy buying power I agree). Yet - they fail. So their study, strategy, understanding of the market dynamics, people's priorities & expectations about value for money were all TRASH! What a waste of money. Dhuh!