VW to Centralize Component Operations?

Volkswagen AG intends to merge its division-level component operations into a single unit, sources tell Bloomberg News.

The consolidation aims to streamline production, simplify parts inventories and cut costs. The move is part of VW’s efforts to improve its efficiency and margins as it struggles to overcome its self-inflicted diesel emission cheating scandal.

VW senior management showed the plan to VW’s supervisory board earlier today and may present details on Thursday, according to Bloomberg. It says the consolidation would entail some 70,000 employees at more than two dozen facilities worldwide.

Bloomberg’s sources say the board also is likely this week to announce a review of company assets. They say possible candidates for a selloff are VW’s Ducati motorcycle unit; MAN Diesel SE, which makes large marine and power plant diesels; and MAN Renk AG, a supplier of specialty transmissions, gear units and slide bearings.