Preparing for electric vehicle sales: Volkswagen Group reshapes dealer marketing model
2020-05-22
Preparing for electric vehicle sales: Volkswagen Group revamps dealer marketing model
On May 21, the Beijing News reporter learned from Volkswagen Group officials that, to boost the purchase conversion rate of electric vehicles, Volkswagen has revamped its dealership marketing model. Its retail partners have now unanimously agreed to transition into "agents" specializing in electric vehicles, and agency agreements have already been signed. According to information disclosed by Volkswagen Group, under the new marketing approach, consumers—whether placing orders online or offline—will be required to designate a preferred dealer when placing an order with the Volkswagen Group. Meanwhile, dealerships are shifting their roles: moving away from traditional sales activities to focusing on organizing test drives, managing transactions, and ensuring vehicles are delivered in a manner that leaves customers thoroughly satisfied.
The Volkswagen Group stated that after the transition, dealers will receive a fixed commission on electric vehicles, subject to certain constraints. The aim is to prevent dealers from persuading customers who initially planned to buy an EV to instead opt for a gasoline-powered car. This marketing strategy will be implemented starting with the Volkswagen ID.3, with the hope of boosting sales of electric vehicles.
Holger B. Santel, Volkswagen's Head of Sales in Germany, stated, "This new marketing model will enhance the car-buying experience for customers while also easing the burden on dealers—eliminating the need for dealers to finance vehicles upfront. Additionally, Volkswagen will cover inventory costs as well as expenses related to showcasing and maintaining the vehicles."
According to Volkswagen Group's plan, by 2025 the company will launch 80 all-new electric models and achieve an annual production capacity of 3 million electric vehicles. By the end of 2022, the Group will have 16 electric vehicle production facilities worldwide, and by no later than 2030, every single model in Volkswagen's lineup will be fully electrified.
Translated from Sina Auto
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Preparing for electric vehicle sales: Volkswagen Group reshapes dealer marketing model
2020-05-22
Preparing for electric vehicle sales: Volkswagen Group revamps dealer marketing model
On May 21, the Beijing News reporter learned from Volkswagen Group officials that, to boost the purchase conversion rate of electric vehicles, Volkswagen has revamped its dealership marketing model. Its retail partners have now unanimously agreed to transition into "agents" specializing in electric vehicles, and agency agreements have already been signed. According to information disclosed by Volkswagen Group, under the new marketing approach, consumers—whether placing orders online or offline—will be required to designate a preferred dealer when placing an order with the Volkswagen Group. Meanwhile, dealerships are shifting their roles: moving away from traditional sales activities to focusing on organizing test drives, managing transactions, and ensuring vehicles are delivered in a manner that leaves customers thoroughly satisfied.
The Volkswagen Group stated that after the transition, dealers will receive a fixed commission on electric vehicles, subject to certain constraints. The aim is to prevent dealers from persuading customers who initially planned to buy an EV to instead opt for a gasoline-powered car. This marketing strategy will be implemented starting with the Volkswagen ID.3, with the hope of boosting sales of electric vehicles.
Holger B. Santel, Volkswagen's Head of Sales in Germany, stated, "This new marketing model will enhance the car-buying experience for customers while also easing the burden on dealers—eliminating the need for dealers to finance vehicles upfront. Additionally, Volkswagen will cover inventory costs as well as expenses related to showcasing and maintaining the vehicles."
According to Volkswagen Group's plan, by 2025 the company will launch 80 all-new electric models and achieve an annual production capacity of 3 million electric vehicles. By the end of 2022, the Group will have 16 electric vehicle production facilities worldwide, and by no later than 2030, every single model in Volkswagen's lineup will be fully electrified.
Translated from Sina Auto
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