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

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 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