Volkswagen Group is reevaluating its direct-to-customer approach. The German automaker recently informed retail partners in select European markets that it plans to initiate a joint review of its sales models.
In a press release, Volkswagen stated that the direct-to-customer approach remains its long-term goal. However, it also acknowledged that its sales model may require some changes in the short- to mid-term to ensure the best customer experience for consumers.
“Due to the slower transition to electric mobility across the industry, two sales models for private customers would need to be operated in parallel longer than originally anticipated: The Agency model for all-electric vehicles (BEVs) and the indirect sales model for vehicles with other drivetrains,” VW said.
Volkswagen knows that maintaining such a complex sales model for an extended period would be challenging. Hence, there is a joint review with wholesale and retail organizations. VW’s join review will determine if returning to an indirect sales model for battery electric vehicles (BEVs) is better for the company in the short- to mid-terms.
Volkswagen expects the results of the review to be released by Q1 2025.
The German automaker plans to continue the direct-to-customer sales model with a full agency in three areas, as listed below.
- The successful and established Fleet Agency is to be further scaled and optimized.
- The Full Agency for vehicles across all drivetrains – not just BEVs – will be established in the designated markets Ireland and Sweden.
- The CUPRA brand as Agency forerunner of the Group will continue to sell its BEVs in the Agency model.
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