Volkswagen is tightening its grip on North America as the German automaker works to recover from a difficult 2025, with a leadership change at Volkswagen of America and closer oversight from Volkswagen Group CEO Oliver Blume.
Several Volkswagen Group brands saw sharp declines in profits, prompting the company to take broader steps aimed at improving its performance. Those changes now include increased control from the company’s headquarters in Germany over key markets, including North America.
Marco Schubert Named New Volkswagen of America CEO
Volkswagen of America will soon have a new CEO. Kjell Gruner is leaving the company and will be replaced by Marco Schubert, who currently serves as Audi’s head of sales and marketing and is also a Volkswagen Group board member.
Under the increased oversight from Wolfsburg, Schubert will take responsibility for improving Volkswagen of America’s performance in both sales volume and profit margins. His position on the Volkswagen Group board will also bring him into closer contact with Blume.
Oliver Blume to Closely Monitor North American Operations
According to Automotive News, the leadership change was triggered by overspending during the development of the Volkswagen Atlas. The North American division was largely responsible for the SUV, and the reported cost overruns are said to be a key reason Blume plans to watch operations in the region more closely.
As Volkswagen Group seeks to reduce spending and increase revenue, controlling costs has become a central priority. The report said Blume is tightening budgets through greater spending discipline, simplified vehicles and streamlined operations that centralize functions.
New CEO Faces Challenges Across Multiple Brands
Schubert’s responsibilities will extend beyond Volkswagen of America. He will also have Audi and Porsche to consider, with both brands facing tariff impacts, while Scout Motors has encountered repeated issues affecting its rollout.
The incoming executive will face pressure to improve operations while managing challenges across the broader Volkswagen Group portfolio.
Possible U.S. Production Strategies Remain Unconfirmed
One potential approach could involve finding ways to build some of Audi’s most popular models in the United States to reduce tariff penalty payouts. Schubert could also play a role in advancing Scout Motors during his tenure.
Possible production candidates mentioned include the Audi Q5, Q7 and the primarily made-for-America Q9 at Scout Motors’ future plant in Blythewood, South Carolina. Such a move could potentially help Volkswagen recover its investment in the facility more quickly.
Volkswagen could also seek to further utilize its Chattanooga, Tennessee, plant by producing additional models alongside the Atlas and Atlas Cross Sport.
However, none of these possibilities have been confirmed as action plans. Schubert’s leadership will be closely watched as Volkswagen tightens control over its North American operations while managing the interests of Volkswagen, Audi, Porsche and Scout.
