The world Commercial Vehicle market is expected to witness radical changes with Andreas Renschler (56 years)-an Ex Daimler top executive joining VW as the head of their new commercial vehicle division. It is Volkswagen Strategy to beat Daimler.

The 25-year Daimler veteran quit surprisingly in Jan 2014 as the operations chief at Daimler’s Mercedes-Benz unit. This was a year after he was asked to switch out of his job as the company’s trucks chief. He was a member of the Daimler AG management board from October 2013 until January 2013, in charge for Daimler Trucks and Daimler Buses – the world’s largest truck and bus manufacturers. During his tenure with Daimler, he managed to form and strengthen its stance as a global player with production in Europe, China, North America, South America and it was in his span that the India operations of Daimler was set up. He founded BharatBenz.With the obligatory waiting period completed per the German business practice to not join a competitor firm immediately or before a definite time frame, Mr. Renscheler has now officially joined hands with VW and set off the activities as the VW Trucks Chief. His task in VW will be to put together the commercial vehicle activities of VW. 

Volkswagen new strategy

Mr Andreas Renschler has started his journey with Daimler in 1988.

Andreas Renschler

VW, that has sought control over Scania and MAN after acquiring a majority stake and also has under it the Volkswagen Nutzfahrzeuge subsidiary that is essentially focusing on vans, targets to form the biggest commercial vehicle company in the world beating Daimler that holds the No 1 position. Synergies are expected in joint purchasing, joint development and production. The intent is to save costs incurred in developing engines, axles, exhaust and other systems separately for each of the modules.  The latest development of Euro IV in Europe costs hundreds of billion Euros for each OEM. With the joint modular platform which VW uses successfully for its car brands, it would save millions in R&D and reduce the purchasing price for the components due to volumes. 
MAN and Scania salesScania, that has been profitable and making the biggest margin in the industry appears reluctant to cooperate. Mr.Leif Östling, a former Scania CEO, who was in charge to ascertain cooperation between Scania and MAN before Mr. Renschler, was not successful to the expected degree in this undertaking. Now, it is upto  Mr. Renschler to realize the task of bringing the companies in sync. It will be interesting to see how Mr. Renschler conquers this feat and help VW outshine Daimler.

Volkswagen Share holding structure:

VW group structure

Mr Piech Volkswagen charman

Mr Winterkorn VW CEO

Latest Research Report:

– BharatBenz – Game Changer Analysis Part 2

– BharatBenz – Game Changer Analysis Part 1

Source: Autobei, MAN, Daimler, Volkswagen, Scania

Leave a Comment