Volkswagen Reorganizes Its Sales Network in Europe
The Volkswagen Group is undertaking a radical change in the way it sells its automobiles in the European market. The German brand plans to digitalize its sales process massively and reduce its dependence on traditional sales points, seeking greater efficiency and adapting to new buying habits. The horizon for having this optimized network is set for 2026. 🚗
A New Agency-Based Model
The core of the transformation lies in replacing the independent dealership model with a system of agencies that operate under unified factory guidelines. Volkswagen is actively negotiating with its commercial partners to implement this scheme. This will mean that many current establishments will cease operations. In the new system, the company will control the stock and prices more directly, while the surviving sales points will receive a commission for each vehicle delivered, thus centralizing the process.
Main Operational Changes:- Reduction of Physical Points: Numerous dealerships and agencies will close to optimize the network.
- Centralized Control: The factory will manage inventories and set prices homogeneously.
- Commission-Based Remuneration: Commercial partners will be paid for each car delivered, not for the sale itself.
Volkswagen seeks to protect the profitability of commercial partners that integrate into the new optimized network.
Strategic Motivations Behind the Change
This move is not isolated. It responds to competitive pressure from brands that sell exclusively online and aligns with the global transition to electrification. By simplifying the structure and digitalizing the experience, Volkswagen expects to significantly reduce operating costs and offer a more uniform buying process across all European countries.
Key Objectives of the Reorganization:- Compete with Online Brands: Respond to the threat of manufacturers with 100% digital sales models.
- Accompany Electrification: Adapt the sales network to the new era of electric vehicles.
- Standardize the Experience: Offer the same digital buying process in all markets.
Impact on the Customer Experience
For the buyer, the change will be noticeable. The tradition of haggling the price with a salesperson at the dealership may disappear. However, in exchange, they will gain the ability to configure their car in detail from home, through digital platforms, without pressure to add equipment or extras available in the warehouse. The brand is betting on a more transparent experience controlled by the end user. 💻