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

What can we expect from Mercedes-Benz for this year and the next? It seems all matters have been laid out with luxury carmaker’s vehicle lineup for 2017 and 2018. As...
by - September 19, 2017
It was in February when Ford revealed the new Fiesta ST, just before it made its official debut at the 2017 Geneva Motor Show in March. But it is not...
by - September 19, 2017
If you search for the word "grille" on the dictionary, what you will get is a definition that says "a grating forming a screen or barrier, or an ornamental one...
by - September 19, 2017
We recently heard that Italian automakers, Ferrari and Lamborghini, are not so keen on building an all-electric sports car just yet. On the contrary, Bentley has just confirmed that there...
by - September 17, 2017
Back in 2013, Nissan introduced the IDx Concept at the Tokyo Motor Show. When the audience first saw this, a lot of people got excited to see a lightweight sports...
by - September 17, 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