Dr. Herbert Diess and Hinrich J. Woebcken laid out their strategy for the newly established Volkswagen North American Region (NAR) while speaking to employees at the Volkswagen of America headquarters.

The Volkswagen Group aims to strengthen its position in the North American Market, where it has been struggling of late. The idea is to give the NAR more independence, allowing it to better react to customer and market demands of the region.

“The establishment of the North American Region provides the U.S., Mexico and Canada more freedom and more responsibility than ever before,” said Dr. Herbert Diess, CEO, Volkswagen Passenger Cars Brand. “Strengthening the region also means strengthening leadership and I am confident that Hinrich J. Woebcken is the right man for the job.”

Dr. Diess further confirmed that Hinrich J. Woebcken will assume the role of President and CEO of Volkswagen Group of America, Inc.

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The full press release follows.

Herndon, VA — (April 15, 2016) Speaking to employees at the Herndon headquarters of Volkswagen of America, Inc. (VWoA),  today Dr. Herbert Diess, CEO, Volkswagen Passenger Brand and Hinrich J. Woebcken, CEO of the North American Region, laid out the strategy for the newly established Volkswagen North American Region (NAR).

“The establishment of the North American Region provides the U.S., Mexico and Canada more freedom and more responsibility than ever before,” said Dr. Herbert Diess, CEO, Volkswagen Passenger Cars Brand. “Strengthening the region also means strengthening leadership and I am confident that Hinrich J. Woebcken is the right man for the job.”

Additionally, Dr. Diess also confirmed that Hinrich J. Woebcken will also assume the role as the President and CEO of Volkswagen Group of America, Inc.

With creation of the NAR, Volkswagen Group is strengthening its activities in the United States, Mexico and Canada. The aim of the NAR is to create the ability to react better to customer and market demands unique to the region. The NAR will be responsible for aligning all regional activities of the brand including sales and marketing, product development, procurement and production. The structure allows for closer proximity to the markets and establishes more autonomy, responsibility, empowerment and collaboration than ever before.

”With the new structure of the North American Region we will be empowered to make the decisions to bring the vehicles that the consumers in the market are demanding,” said Hinrich J. Woebcken, CEO of the North American Region, Volkswagen Brand. “I look forward to leading the teams in the U.S., Mexico and Canada and make sure we deliver these markets the right products, with the right content at the right time.”

The NAR, under the leadership of Hinrich J. Woebcken, will operate with a board structure. The makeup of the VW NAR Board of Management includes the functions of Sales & Marketing, Finance, Production, Engineering, Human Resources and Purchasing. Additionally, new functions apart from the board are being added to help align the organization. The NAR is currently operational and has actively engaged in project development.