VW adopts new sales model for all-electric vehicles in Germany

By CARSIFU | 21 May 2020

WOLFSBURG: All Volkswagen retail partners have signed the agreement for the new sales model for vehicles from the all-electric ID. family.

The sales launch of the ID.3 marks the start of the agency model for private customers and small commercial enterprises that has already proven its worth for major customers over many years.

The benefit for customers: They can switch seamlessly between online and offline channels and order direct from Volkswagen, while their preferred dealer remains their local contact.

The dealer assumes the role of agent under the new model and receives a commission from Volkswagen for this service.

The agency model lays the contractual foundation for integrating online business and showroom-based business.

From sales launch, customers can order vehicles from the ID. family direct from Volkswagen. At the same time, they select their preferred dealer for personalized customer care and local services.

Holger B. Santel, Head of Sales and Marketing Germany, commented: “All our partners are now 100% on board. Broad approval from our retail partners for the agency model is a strong signal for the future. From the customer’s perspective, Volkswagen and retail become one unit with the agency model. And this seamless, coordinated shopping experience at all touchpoints is exactly what our customers want.”

Volkswagen also takes responsibility for vehicle financing and bears the returns and residual value risk.

As Santel explains: “The dealer no longer has to finance vehicles in advance. We also bear inventory cost and the costs associated with showroom vehicles. We are offering dealers an extremely attractive leasing concept for demonstration vehicles.”