Volkswagen Group

Volkswagen Group subsidiary Porsche has increased its stake in Croatian brand Rimac Automobili, opening the door for a long-rumoured takeover at Bugatti. Last year CarAdvice reported an alleged agreement between the two companies could see Porsche incrementally increase its stake in Rimac to as much as 49 per cent by mid-2021. In return, Rimac would acquire the Bugatti name from the Volkswagen Group without money swapping hands.

Volkswagen Group boss Herbert Diess has solidified his company's commitment to battery-powered vehicles, rejecting hydrogen as a viable fuel alternative. Speaking to the Financial Times, Mr Diess was adamant there was no future in hydrogen passenger cars due to limitations in the technology. "You won’t see any hydrogen usage in cars," Mr Diess said.

Volkswagen and Audi will soon be managed from under the same roof, with the two companies announcing they will combine operations in Australia. While most Volkswagen Group brands – which include Bugatti, Bentley, Lamborghini, and Porsche – are traditionally run as separate entities, this latest move means local decisions about the company's most popular passenger vehicles will be centralised.

Stephan Winkelmann is set to reprise his role as CEO of Lamborghini, according to German automotive news outlet Automobilwoche. Sources say his appointment will be approved overnight by Audi's management team, which oversees strategic decisions for Lamborghini.

Job cuts continue to spread through the automotive industry as car manufacturers try to reduce costs due to a dramatic sales decline in the first half of 2020. Bentley has announced it would be slashing 1000 jobs, nearly 24 per cent of the company's workforce, as reported by news agency Reuters. The announcement came within 24 hours of Aston Martin announcing it would cut 500 jobs, more than 19 per cent of its personnel.