Volkswagen To Reduce Size Of Dealer Network
By Kyle Lindsay
Friday, October 13, 2017 - 11:30
Volkswagen plans to reduce the size of its European dealer network and introduce online sales as it adjusts to changing buying habits.
Volkswagen is pushing to cut expenses over the greater part of its 12 brands in the wake of the emanations outrage as it faces investing vigorously in the move toward electric autos.
The aim to increase profitability and efficiency to its 3,000 dealers in the European distribution network. Although an average of 10 percent wants to trim the costs of the network to help double the average return per distributor to 2 percent from 1 percent.
Juergen Stackmann – Sales Chief
“We have for years been in consolidation mode in all world markets,” “This will surely accelerate somewhat in the next one, two years, also in Germany.”
“This will surely accelerate somewhat in the next one, two years, also in Germany.”
There were no details given on the size planned size of planned cost reductions and the number of dealerships that could be axed under Volkswagen’s “future sales model.”
Customers of mass-market car brands like Volkswagen’s are already making greater use of online shopping, allowing them to better compare rival offerings.
“Volkswagen and dealers are now developing a joint online portal”
“On average employs 35 staff and that workforce can be cut by about four overtime or the staff affected can be assigned elsewhere”
“Under the terms of the carmaker’s new contracts with dealers, to be concluded early next year, Volkswagen wants to forego its right to dictate workforce sizes”
According to Volkswagen dealerships will be able to cut the needed for servicing cars by as much as 70 percent.
This will result in 35 staff and the workforce can be cut off overtime and be assigned elsewhere.