Volkswagen Hands North America the Car Keys, Extends Its Curfew

More autonomy is coming to North American Volkswagen operations, thanks in part to dealer protests calling for exactly that.

Today, Volkswagen established a new North American Region (NAR) encompassing Canada, the U.S. and Mexico, headed by no-longer-interim Volkswagen Group of America president and CEO Hinrich J. Woebcken (who replaced departing CEO Michael Horn in March).

The move allows North America more flexibility as to the volume of certain models and where they are sold. The automaker’s U.S. dealer network began revolting against their head office last month, accusing top brass of ignoring their pleas for product reassurances in the wake of the diesel emissions scandal.

Brand chief Herbert Diess failed to fully placate dealers at a meet-up earlier this month, especially those looking for reparations, but did commit to boosting production of popular models to stimulate U.S. sales.

By setting up the NAR, Volkswagen lessens the need for decisions to come from across the Atlantic, and allows North American dealers and regional officials to feel more in charge of their own destiny. All regional activities will be aligned through the NAR, including product development, procurement and production.

“The establishment of the North American Region provides the U.S., Mexico and Canada more freedom and more responsibility than ever before,” Diess said in a statement.

The NAR will operate with a board structure, with Woebcken at the helm.

“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,” stated Woebcken, adding that when a region calls for more strong-selling product, they’ll get it.

Back at home, Diess is still facing opposition from organized labor over a cost-saving efficiency plan and ongoing rumors of layoffs.