VW makes more room for haggling on new car prices by ditching direct sales

The Volkswagen Group will stop selling VW, Skoda and Audi EVs direct to customers in the short to medium term, blaming slow electric car take-up for the rethink.

VW is one of many firms delaying or reversing non-traditional sales models that saw dealers taking on a revised ‘agency’ role, with sales contracts between customers and manufacturers, instead of between customers and dealers, as has been traditional. 

Ford, JLR and Stellantis have also moved away from direct sales in recent months, and last week we reported that Polestar in the UK is now pursuing a dealership model, having previously only sold direct.

The VW Group’s original masterplan was that EVs would be sold direct to customers, via dealers acting as its agents, or online. Meanwhile, it envisaged the traditional dealer experience being retained for sales of internal combustion-engined (ICE) cars, albeit as the ICE sector declined with fewer models and sales.

The VW Group says the agency model remains its ‘guiding light’, but suggests the less than eager uptake of electric cars across Europe has forced a rethink. 

A review of the strategy was announced before Christmas, when the firm said, “While the ‘Direct to Customer’ approach with a Full Agency remains the long-term ambition, changing conditions might require changes in the short to mid-term to ensure the best possible customer experience.” 

Now, VW says it has taken the decision to pause direct-to-customer sales and “return to the wholesale model”. 

First to be removed from the direct sales programme are Skoda EVs, which will be sold in the traditional manner by dealers from 20 February. VW and Audi-branded EVs will follow in April, in a move that seems destined to increase the headroom for haggling by customers in a marketplace that’s already witnessing downward pressure on EV prices.

One exception to the VW Group decision is the Cupra brand, with its cars continuing to be sold only via the agency/direct sales method.

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