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

Volkswagen Group EV sales double in 2021 despite global chip shortage
Volkswagen HQ
Volkswagen

Volkswagen Group EV sales double in 2021 despite global chip shortage

Despite fewer overall car sales, the Volkswagen Group delivered 452,900 EVs across all brands in 2021, almost twice that of the previous year
12 Jan 2022
Volkswagen confirms Project Trinity will enter production in 2026
Volkswagen Project Trinity teaser
Volkswagen

Volkswagen confirms Project Trinity will enter production in 2026

It’ll be built at the firm’s Wolfsburg plant, which will soon be transformed into an EV hub that will also produce the ID.3 electric hatch from 2024
13 Dec 2021
All-electric Volkswagen ID. California campervan announced
Volkswagen ID Buzz concept
Volkswagen

All-electric Volkswagen ID. California campervan announced

Volkswagen confirms its ID. Buzz-based camper will be launching in “the second half of this decade”, securing jobs at the firm’s Hannover plant
9 Dec 2021
Volkswagen signs three new deals to secure EV battery supply to 2030
Volkswagen badge
Volkswagen

Volkswagen signs three new deals to secure EV battery supply to 2030

Volkswagen says its new partnerships will help it to reach an annual production capacity of 2.2 million electric cars by the end of the decade
8 Dec 2021

Most Popular

Next-generation Mercedes E-Class to stick with combustion engines
Mercedes E-Class render
Mercedes E-Class

Next-generation Mercedes E-Class to stick with combustion engines

Mercedes is planning on launching a new E-Class in 2023 and it'll come with petrol, diesel and plug-in hybrid powertrains
21 Jan 2022
New 2022 Land Rover Defender 130 revealed in patent images
Land Rover Defender 130
Land Rover Defender

New 2022 Land Rover Defender 130 revealed in patent images

Stretched Land Rover Defender 130 eight-seater leaked in patent images, showcasing design in full
21 Jan 2022
Top 10 best large SUVs on sale 2022
Best large SUVs - header image
Large SUVs

Top 10 best large SUVs on sale 2022

Need a practical family car? Look no further than the best large SUVs on sale today
20 Jan 2022