VW Group network cuts confirmed
16 September 2024
VW Group is planning to reduce both the number of retail partners and the number of locations for its portfolio of brands including Audi, Seat, Skoda, Cupra and Volkswagen, a spokesperson has confirmed.
VW Group currently has 132 retail partners operating 519 new car franchises, according to Auto Market Data. These sales points are operated from 447 showrooms. 
As reported in Auto Retail Agenda at the weekend, The Irish News claimed the number of partners would shrink to just 25, a suggestion VW has not denied.
Confirming the restructuring to Auto Retail Agenda a VW Group spokesperson said: “We have not confirmed the number, but it will be smaller than it is now.
“This project has been underway for a while. There will be a consolidation in the number of partners and as a result there will be a reduction in the footprint of the network and number of sites on the ground.
“We’re doing this to make sure we and our partners are viable in future.
“The majority of conversations [with retailers] have already kicked off.”
Auto Retail Agenda understands the plans were first discussed with some retailers as far back as March but there has not been a cross-brand announcement to the whole group network.
One retailer source said the restructuring was being done on an individual basis with VW Group suggesting retailers that were not among the approved list sell to those that were approved.
One investor added: “VW Group is trying to have one retail group per geographic area representing all the brands, but there hasn’t been a set timeframe.”
They added that VW Group had not gone down the typical route for a network restructure of terminating everyone and then issuing contracts to a reduced number of retailers.
Another source suggested the plan may be difficult to put into place because not all retailer operating a VW Group franchise wanted all the brands on offer.
According to network expert Auto Market Data only 11 retail groups currently have new car contracts with all of Audi, Volkswagen, Cupra, Skoda and Seat.
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