VW Readies “Dealer of Tomorrow” Plan for Europe

Volkswagen AG’s namesake brand plans to launch a new sales and distribution scheme in Europe that includes direct-to-customer sales and flexible dealership and service center models.

The carmaker, which announced the plan this week at its dealer council meeting in Berlin, will roll out the initiative in April 2020. VW is asking all 5,400 dealers and service facilities in Europe to commit to the new plan by the end of November.

Under the program, VW and its dealer network will develop a joint internet platform to handle the entire purchasing process. The system will include vehicle and feature selection, financing, payment and used car trade-ins.

Customers and shoppers will receive unique identification names, which VW says will allow it to provide customized, around-the-clock support. This could include special offers, over-the-air software updates for existing customers and access to VW’s One Digital We Platform for car-sharing and other new mobility services.

Online sales will be complemented by VW’s traditional dealerships with sales and service under one roof along with a new network of city showrooms (left) and small “pop-up” stores. The company estimates that each dealer will need only one full-feature facility, which will be supported by offsite showrooms, used car centers and “service factories” as needed.

VW says the changes will allow its sales team to be more flexible, efficient and customer-focused. The switch was prompted by the advent of new technologies and connected services, shifting customer expectations and new competitors, according to the carmaker.