VW Group to cut European dealer network and move focus online

The reduction in VW dealers is the latest fallout from the ongoing emissions scandal and will affect the UK

Used Volkswagen up! - Volkswagen badge

The Dieselgate scandal continues to hit Volkswagen Group in the pocket as bosses from the German manufacturer informed news agency Reuters that the firm plans on reducing the size of its European dealer network and put more focus on selling cars online. 

The dealership cuts will affect all 12 Volkswagen AG brands across the network of 3,000 European dealers. VW’s target is to increase profitability and efficiency across the dealership network by an average of 10 per cent and trim costs in order to double the average return per distributor. This could mean either reducing staff numbers in a dealership or closing the showroom outright.

Best new car deals 2017

VW Group brand sales chief Juergen Stackmann told Reuters about the shift of resources from dealerships to online but did not state how big the cull will be and how many dealers will be shut. The electric car shift is another factor in VW’s decision to trim its dealership network along with the on-going emissions scandal.

On average, its said that VW Group distributors employ 35 staff with four of those being either cut from the dealership or assigned elsewhere. The German car giant is set to undergo contract negotiations with its various dealers across Europe to gain its right to dictate workforce sizes. The move will allow VW itself to trim its dealership staff down to optimal levels.

Will fewer car dealerships be bad for UK car buyers? Have your say in the comments...

Recommended

Pure-electric Volkswagen ID.6 SUV spied testing in the Alps
Volkswagen

Pure-electric Volkswagen ID.6 SUV spied testing in the Alps

A near-production version of seven-seat Volkswagen ID.6 SUV has been spotted wearing minimal camouflage
8 Sep 2020
Entire Volkswagen line-up updated for 2021
News

Entire Volkswagen line-up updated for 2021

Volkswagen has revised its complete range of vehicles for 2021, adding new engines, fresh tech and its latest MIB3 infotainment system
11 Aug 2020
Volkswagen e-Beetle, e-Golf Classic and e-Safari trademark applications hint at electric classic car conversations
Electric cars

Volkswagen e-Beetle, e-Golf Classic and e-Safari trademark applications hint at electric classic car conversations

Trademark applications suggest mode classic EV conversions will follow the converted Volkswagen Samba Bus and Electric Beetle Cabrio revealed last yea…
4 Aug 2020
Volkwagen introduces United trim editions for its Polo, T-Cross and T-Roc models
News

Volkwagen introduces United trim editions for its Polo, T-Cross and T-Roc models

United models add more kit to trio of compact Volkswagens, but at a reduced price over the trim levels on which they’re based
24 Jul 2020

Most Popular

New Nissan 400Z previewed with Z Proto concept
Nissan 370Z

New Nissan 400Z previewed with Z Proto concept

The Z Proto concept hints at the next Z car, which is likely to be named the Nissan 400Z, but the production model won’t be coming to Europe
16 Sep 2020
New BMW 128ti prototype review
BMW 1 Series

New BMW 128ti prototype review

The new BMW 128ti has its sight set on the Volkswagen Golf GTI
15 Sep 2020
How green are electric cars? Polestar data shows ICE trailing EV
News

How green are electric cars? Polestar data shows ICE trailing EV

Electric car maker reveals whole-life CO2 emissions of the Polestar 2 are better than a petrol XC40 - but EV is only 14% cleaner with global energy mi…
17 Sep 2020