Volkswagen's Split Could Be Good News

Large overhead expenses and operational inefficiencies resulting from looking after a highly diversified, yet centralized business is considered a reason why Volkswagen hasn't been able to improve its profitability. The company's 6% automotive operating margins last year lagged Toyota's 9.4% margins, and improved to only 6.2% in Q1, mainly because of higher sales volumes for the premium luxury brands that are more profitable.