VW Will Need More Dealers - In Four Years
Volkswagen of America will need to expand its dealer network after 2014, said Jonathan Browning, Volkswagen Group of America's CEO.
The extra dealers will be needed to achieve VW's goal to sell 800,000 units annually in the United States by 2018, Automotive News reported.
VW, which is on track to sell about 250,000 units this year, expects to reach 450,000 to 500,000 in the next five years with the introduction of a new mid-sized sedan and a redesigned Beetle next year. Browning said the current 582 dealers can handle that much extra volume.
But to reach the 800,000 target, he said, “we need to expand the footprint.”
Browning said VW has not set its long-term goal for the number of dealers it needs, but said many of them have “invested and are committed to growing.”
Browning said the new mid-sized sedan, to be built at VW's new plant in Chattanooga, Tenn., will debut at the Detroit auto show in January and go on sale in the third-quarter of 2011.
Meanwhile, VW sales are being driven by the new-generation Jetta sedan that went on sale in September. VW slashed the entry-price of the Jetta by $1,700 to $15,999, not including shipping.
“We are extending the price band so we can reach out for new customers,” Browning said. “The new price point signals that VW is in reach and, with free maintenance, that ownership is cost-efficient.”
Early data show that 60 percent of Jetta buyers are conquests, on par with VW's goals, Browning said.
To handle a growing number of trade-ins, VW is expanding its certified used-vehicle program and will tie part of its variable margin to used-car sales effective Jan. 1.
Browning said VW wants to involve more dealers in the program. Currently, about 500 are active.
More Industry

Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →