Volkswagen has gathered 13,000 car retailers in Hamburg to showcase its latest electric vehicles (EV) and “shifting future perspectives of the dealerships” at a global retail conference.
The car manufacturing giant is showcasing its forthcoming ID.7 flagship EV and its zero-emissions ID.2all hatchback at the event which, it said, would also give its retail partners fresh insights into the way it plans to position itself to bring a new “Love Brand” philosophy to life.
A “sneak peek of the next generation Tiguan SUV and the future of the Passat will also be on the agenda, VW said.
Volkswagen has gathered 13,000 car retailers in Hamburg to showcase its latest electric vehicles (EV) and “shifting future perspectives of the dealerships” at a global retail conference.
The car manufacturing giant is showcasing its forthcoming ID.7 flagship EV and its zero-emissions ID.2all hatchback at the event which, it said, would also give its retail partners fresh insights into the way it plans to position itself to bring a new “Love Brand” philosophy to life.
A “sneak peek of the next generation Tiguan SUV and the future of the Passat will also be on the agenda, VW said.
Imelda Labbé, VW’s board member for marketing, sales and aftersales, said: “Car dealerships play a key role in vehicle sales today and will continue to play this role tomorrow.
“This is why we really want to have our dealers join our journey into the future, generate enthusiasm for our brand and jointly tackle future challenges.”
AM understands that Volkswagen Group brands Audi, Cupra, Seat, Skoda and VW will now transition to an agency model for EV sales in 2024 after the new distribution model’s roll-out was put back from this summer.
VW – the UK’s best-selling car brand in 2022 – plans to produce only EV models in Europe from 2033 and will introduce 10 new e-models by 2026.
At this week’s brand showcase event Labbé is being joined by Volkswagen chief executive Thomas Schäfer, Kai Grünitz (board member for Technical Development) and Andreas Mindt (head of Volkswagen Design).
Schäfer said: “We are making Volkswagen a true Love Brand once again. Our dealers will play a key role in this process – because they are the individuals who have direct contact with our customers.
“The aim (of this event) is to jointly discuss the shifting future perspectives of the dealerships. After all, we can tackle the transformation of the traditional car business only with the help of our dealers.”
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Iain R - 01/04/2023 15:47
I write this as a long-time retiree from the Volkswagen Group who found the subject article of great interest; containing both good news and bad! As someone who is fiercely proud to have worked for the Company I was delighted to read of the exciting new product range and, most importantly, that the Dealer Network is viewed as an integral part of future plans. The disappointing element however was the statement that the “agency” route is seen as the future. As the inventor of a vehicle supply process, designed over many years then implemented and managed by myself within the UK in the year prior to my retirement, I have felt continually sad and frustrated that dealer networks (I believe across the industry) have had to contend with a multitude of ill-conceived supply processes. A brand's success is, has been in the past and, I believe, will be in the future, dependent on the cumulative achievements of its dealer network. My process was so successful in dramatically improving stock-turn, sales volumes and profitability throughout the pipeline (dealers' return on sales trebled in that first year) that it was patented by Volkswagen AG in Japan, Europe and North America. The basic, fundamental principle on which my process was based, and the reason that it was so successful, was that dealers receive a fair and equitable supply of product relative to their market area (this should also equate to their financial investment in the franchise). Following retirement my process rapidly eroded and any approaches I have made to resurrect it have been rebuffed. I have always believed that the demise of my supply process was mainly because of the fixation in the minds of senior management within the industry that “customer order” priority is the only way of allocating product. The further removed one is from the retail showroom the stronger is that belief. In the real world it is the dealer who decides to whom the vehicle is sold and on what financial terms. The exciting new model requires no sales expertise and all dealers should get their “fair share” of what is likely to be a full-margin vehicle. As the demand level decreases during the life cycle of the model then that same dealer will be responsible for exercising his / her sales skills whilst retaining less margin (happy to take the rough with the smooth). I should explain that the description above of my process is an over-simplification. The process, as patented, contains a number of management control mechanisms to cater for the complete demand / supply spectrum whilst always retaining the fundamental “fair share” principle. I see the “agency” model as another retrograde step in entirely the wrong direction.