VW Group reaches an agreement with dealers in China over sales target

Article by Christian A., on January 29, 2015

Volkswagen Group has agreed with its dealers in China, vowing to continue setting reasonable sales goals to make sure that its distribution network remains financially sound. The China Association of Automobile Dealers announced Jan. 23 that VW and its retailers had found ways to "actively cope” with tough market conditions in the country.

VW is one of the carmakers that local dealers have approached to request financial support and lower sales targets. These dealers have found their profits hurt by rapid expansion of sales networks as well as tightening car ownership restrictions set by Chinese cities.

Earlier this month, a dealer criticized Renault for setting high sales targets and forcing retailers to buy more cars than they could sell – leading to price cuts and heavy losses.

The association also disclosed earlier this month that it had convinced BMW Group to shell out to dealers around CHY5.1 billion ($824 million) in subsidies.

Other carmakers also holding talks with dealers in China include Porsche and Toyota Motor Corp. According to the China Auto Dealers Chamber of Commerce, more dealers are exiting the sales network after experiencing a hit in their profits.

If you liked the article, share on:

Topics: vw, china, sales, dealer

Comments

Recommended

Those in the United Kingdom may now order a new version of Skoda’s sports utility vehicle – the new Skoda Kodiaq Sportline. It will be slotted between SE L and...
by - December 10, 2017
As part of its new electrification strategy, German carmaker Volkswagen is working to finalize the production version of the Volkswagen I.D. Crozz SUV concept and introduce the new vehicle to...
by - December 10, 2017
The company founded by Ferdinand Porsche has been in the business of building vehicles -- sports cars, SUVs and race cars – since 1931. The brand has long catered to...
by - December 9, 2017
BMW strongly believes that the future will be all about the electrification, or should we say e-mobility. And this is why as early as now, they already have a vision...
by - December 8, 2017
At this year’s FIA World Touring Car Championship, it was Volvo that stood out and became the victor with an S60 TC1 race car. So to celebrate this victory, the...
by - December 8, 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