Volkswagen dealers in the US now see a brighter future

Article by Christian A., on February 13, 2015

Volkswagen’s dealers in the United States had been pressed by the way the German carmaker try to achieve its goal of selling 800,000 vehicles annually in the country by 2018. Volkswagen remains committed with that sales goal and its dealers are now feeling more positive about reaching that target, no matter how ambitious that sounds.

Well, Volkswagen has been showing signs that dealers alone won’t have to carry the burden of hitting the sales target. In fact, the German carmaker has told its retailers at the National Automobile Dealers Association convention in January that increasing dealership profitability would be more important than achieving the 2018 sales target.

Missing the current crossover boom, VW vowed in January to introduced two new North America-built crossovers to dealerships in 2017, and at least a third crossover is on the drawing board. The German carmaker is planning to 100 dealerships to its US network by 2019, in markets without any VW retailers. Most of these new dealerships will be open after the new crossovers arrive.

The January announcements followed a slew of other changes that have made US dealers become more positive of their situation in the country since Michael Horn was named as chief of Volkswagen Group of America over a year ago. For instance, VW announced in 2014 that it would shorten the life cycles of its products to closely match purchase patterns in the US.

Likewise, the German carmaker established new local marketing associations that would allow dealers to have a bigger say in ad campaigns and promotions. Also, VW is recruiting 200 engineers to man its r&d center in Chattanooga as it bids to strengthen its US-product planning operations.

Before Horn became in charge of the helm in the US, VW’s strategy centered on achieving the 800,000 sales target -- pressing dealers to have big-budget showrooms and leaning on stair-step incentive programs to boost up sales.

Dealers were not happy about that as the program eats up profits and pitted them against one another. [source: automotive news - sub. required]

Topics: vw, united states, dealer

If you liked the article, share on:

Comments

Recommended

New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries