Volkswagen AG, Europe's largest carmaker, is planning to shuffle managers at its luxury brands as part of a merger with Porsche AG, according to people with direct knowledge of the matter.
Wolfgang Duerheimer, Porsche's development chief, may succeed Franz-Josef Paefgen as head of VW's ultra-luxury unit Bentley Motors Ltd., said two people, who asked not to be identified because the discussions are confidential. Porsche Chief Executive Officer Michael Macht is the preferred candidate to run production at VW, people familiar with the matter told Bloomberg News on June 18.
The reorganization underscores Volkswagen's aim of putting executives with product-development experience in charge of its luxury brands. Porsche SE, the holding company of the 911 sports-car maker, rose 5.5 percent on June 21 in Frankfurt, helped by optimism VW will name Matthias Mueller, Porsche's chief product strategist, to succeed Macht as chief executive.
"Volkswagen is gearing up for its battle to become the world's biggest manufacturer," said Frank Schwope, an analyst at NordLB in Hanover who recommends selling the stock. "This seems like a broader reshuffle stretching into various corners of the VW group structure."
Volkswagen, which aims to overtake Toyota Motor Corp. by deliveries and profitability in 2018, is integrating Porsche as the carmakers develop a model strategy that includes sharing platforms. As part of the plan, Stuttgart, Germany-based Porsche aims to expand its lineup to reach a target of doubling deliveries to 150,000 vehicles in the medium term.
VW Shares
Volkswagen's preferred shares rose 42 cents, or 0.6 percent, to 77.23 euros in Frankfurt. The stock is up 18 percent this year, valuing the carmaker at 34.2 billion euros. Porsche fell 1.33 euros, or 3.6 percent, to 35.08 euros.
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