Are VW Luxury Brands Competing With Themselves?

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Sept. 9 (Bloomberg) -- Niranjan Thiyagarajan, consultant at Frost & Sullivan, discusses the brand diversity at Volkswagen as it offers new designs as its luxury brands. He speaks on Bloomberg Television's "The Pulse."

The big brands are like competing siblings.

They are competing for resources.

Do you think the limit is being reached?

They are about to bring in more.

There has always been a big challenge with brains we have a 12-ground -- brand group like vw.

They benchmark themselves against different niches.

Benchmarking is the toyota, ford's. others against bmw and dimer.

Look at the other european manufacturers.

Look at the asian and free manufacturers.

They try to do compare themselves to different brands and look at diversifying.

How much overlap is there between those diagrams?

Quite a bit to admit.

Where vw has shown is the way they diversify these brands.

Many of the platform that has the audi, there has to be overlap in terms of market reach.

It is not really something that affects them.

Is a compensated by the fact there is sort of a commonality?

If we would see a lamborghini suv, would probably have the same base as the key 7 or bentley.

Brand overlap, yes, but nevertheless, you come say that with the fact that ultimately the cars of the same.

When you buy the car, you don't see the chassis, he said the interior, the touch and feel of it.

That is why the interface with the car is really important.

Marketing of volkswagen is key when it comes to designing the interior of these cars.

They have a really big say.

They know what the customers differentiate.

You talk about bentley, what is the field?

Lamborghini?

A lot of it goes into differentiating these brands and a big investment.

Even though the platform i be the same, they're completely different cars.

How much of this is -- how critical is huge understanding the big picture and being a will to strategize a high level, keep his head sort of looking up and say with the pictures?

He has been an incredible influence of volkswagen, bringing together 12 different kids fighting.

It is a big task.

The goals they have to be the largest manufacture with the highest profitability has kind of seeped down and really inspired a lot of their players, a lot of their internal groups to work within themselves.

He has been influential, and is chairman has been a big influence as well.

He does have a big influence, but at the same time the brands themselves, audi is an innovator that leads in the forefront and volkswagen as the mass brand.

Any powertrain development would go to volkswagen while audi would leave it with connectivity, next-generation technology.

They have a synergy were different brands have different approaches to different technologies and they bring it all together to sort of increase synergy.

This text has been automatically generated. It may not be 100% accurate.

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