Volkswagen reviews its sales model
VW cites the slower transition to electric mobility as the reason for the review, which it communicated to retail partners on Wednesday. Since it will probably achieve pure EV sales later than it had expected a few years ago, “two sales models for private customers would need to be operated in parallel longer than originally anticipated: The Agency model for all-electric vehicles (BEVs) and the indirect sales model for vehicles with other drivetrains.”
The company adds that “maintaining this high level of complexity for an extended period of time would be a key challenge for the sales organisation.” It will thus launch a joint review process with the wholesale and retail organisations immediately to clarify “whether returning to an indirect sales model for BEVs might be a favourable alternative for the short- to mid-term.” The results of this process are expected towards the end of the first quarter of 2025.
VW currently sells its MEB models via the agency model. That means local dealers are no longer the customer’s contractual partners, but only an ‘intermediary agent.’ In return, the dealer receives a predetermined amount per vehicle. Still, the customer officially orders directly from VW – the manufacturer wants to utilise the advantages of direct sales (e.g., direct customer contact) while maintaining the large dealer network.
Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Skoda and Audi will participate in the ‘review process’ – in the markets of France, Germany, Poland, Spain and the United Kingdom. Cupra is currently also using the BEV agency model. According to VW, it will continue to do so regardless of the outcome of the review with the other brands – in order to ‘gain further experience with the agency’. Moreover, “the successful and established Fleet Agency is to be further scaled and optimised.” The full agency will also be rolled out in Ireland and Sweden.
“The Full Agency with direct sales to customers clearly remains our guiding star in the long-term. However, given changing framework conditions we have to re-evaluate if our current Agency model for all-electric vehicles delivers the best possible customer experience,” says Marco Schubert, Member of the Group’s Extended Executive Committee for Sales since September. “Therefore, we will initiate a joint review process with our wholesale and retail organisations whether returning to an indirect sales model might be a favourable alternative in the short- to mid-term for selected markets.”
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