VW’s China chief may leave the company image

Volkswagen is planning an extensive reorganization of its managers affecting both its passenger car and truck divisions, as part of efforts to become the world’s largest automaker by 2018.

“A massive overhaul is pending,” a company source told Reuters.

Volkswagen plans to create a new position on its management board to focus on the German auto maker’s crucial Chinese operations, reshuffle the management board at its premium brand Audi AG and reorganize its commercial vehicle activities, people familiar with the situation told Dow Jones Newswires on Thursday.

Spiegel magazine reports that VW China boss may leave and two top Audi executives will be demoted. Karl-Thomas Neumann, head of VW’s China operations since September 2010, is likely to quit after being passed over for promotion.

VW’s top management is said to be displeased with Neumann’s performance in China where quality issues with the carmaker’s DQ200 seven-speed dual-clutch transmissions have led to consumer complaints and have cost the company 400,000 euros, Spiegel reported.

The German giant, which aims to spend 14 billion euros (S$22 billion) on new factories and products in China through 2016, said in April it will build a new factory in western China.