U.S. Volkswagen Dealers Are Poised to Revolt

by Steph Willems

Published: March 12th, 2016

u s volkswagen dealers are poised to revolt

Volkswagen has been on the ropes for months as regulators, governments and the buying public rain blows in the wake of the diesel emissions scandal, but its newest foe might come from the inside — its U.S. dealer network.

American dealers are feeling abandoned by their distracted German parent and could be on the verge of open revolt, Automotive News reports.

The problems facing the dealers are many.

After investing $1 billion over the past decade to expand and upgrade the dealer network — part of Volkswagen’s plans to sell 800,000 units per year in the U.S. and become the world’s largest automaker — sales have fallen to less than half that number.

In addition to the recalls, the stop order on new and pre-owned diesel models and Volkswagen’s delay in finding a diesel fix, problems have cropped up in the supply and allocation process.

Now that the man who kept the dealers placated from the outset of the scandal is gone, an even bigger problem exists for Volkswagen management. Michael Horn, president and CEO of Volkswagen Group of America, stepped down suddenly on March 9, leaving dealers without their biggest champion.

To have their concerns heard, Alan Brown, head of Volkswagen’s national dealer council, plans to lead a delegation to Germany this weekend to get promises on product strategy and volume in writing.

“We’ve got to stop the insanity,” said Brown, who predicts a revolt at the March 31 National Automobile Dealers Association convention if Volkswagen doesn’t respond to their satisfaction.

Volkswagen is already facing lawsuits from a range of litigants — not the least of which is the United States government — but there’s now a very real possibility that dealers could also join the fray.

Steve Kalafer, the outspoken owner of a 17-franchise dealer network, has stated that a Volkswagen dealer group is definitely planning to go after the automaker.

[Image: Volkswagen of America]

#AutomobileDealers #DealerNetwork #DealerRelations #Diesel #Emissions #Sales #Volkswagen #VW #VwDieselScandal

Steph Willems

More by Steph Willems

Comments

Join the conversation

3 of 132 comments

Polishdon on Mar 13, 2016

Wild thought of the day...... If VW decides to retrench to Europe, but could decide to keep their plants in case they decide to reenter market. But for what Can't just leave them empty ??? FCA is looking for someone to build 200's and Darts. Both FCA and VW are familiar with farming out production...... VW starts building 200's and Darts, maybe even using VW platforms.....

Like Reply
- FreedMike on Mar 14, 2016
  
  One partner's a liar and criminal, and one partner's delusional and full of crap. Sounds like a winner! As my kids would say, I ship them.
  
  Like
Kenwood on Mar 15, 2016

What the heck are the dealers gonna do? Stop ordering new cars? Then their customers will go elsewhere and then it's bye-bye sales.

Like Reply

Recent Comments

Honda1 Unions were needed back in the early days, not needed know. There are plenty of rules and regulations and government agencies that keep companies in line. It's just a money grad and nothing more. Fain is a punk!
1995 SC If the necessary number of employees vote to unionize then yes, they should be unionized. That's how it works.
Sobhuza Trooper That Dave Thomas fella sounds like the kind of twit who is oh-so-quick to tell us how easy and fun the bus is for any and all of your personal transportation needs. The time to get to and from the bus stop is never a concern. The time waiting for the bus is never a concern. The time waiting for a connection (if there is one) is never a concern. The weather is never a concern. Whatever you might be carrying or intend to purchase is never a concern. Nope, Boo Cars! Yeah Buses! Buses rule!Needless to say, these twits don't actual take the damn bus.
MaintenanceCosts Nobody here seems to acknowledge that there are multiple use cases for cars.Some people spend all their time driving all over the country and need every mile and minute of time savings. ICE cars are better for them right now.Some people only drive locally and fly when they travel. For them, there's probably a range number that works, and they don't really need more. For the uses for which we use our EV, that would be around 150 miles. The other thing about a low range requirement is it can make 120V charging viable. If you don't drive more than an average of about 40 miles/day, you can probably get enough electrons through a wall outlet. We spent over two years charging our Bolt only through 120V, while our house was getting rebuilt, and never had an issue.Those are extremes. There are all sorts of use cases in between, which probably represent the majority of drivers. For some users, what's needed is more range. But I think for most users, what's needed is better charging. Retrofit apartment garages like Tim's with 240V outlets at every spot. Install more L3 chargers in supermarket parking lots and alongside gas stations. Make chargers that work like Tesla Superchargers as ubiquitous as gas stations, and EV charging will not be an issue for most users.
MaintenanceCosts I don't have an opinion on whether any one plant unionizing is the right answer, but the employees sure need to have the right to organize. Unions or the credible threat of unionization are the only thing, history has proven, that can keep employers honest. Without it, we've seen over and over, the employers have complete power over the workers and feel free to exploit the workers however they see fit. (And don't tell me "oh, the workers can just leave" - in an oligopolistic industry, working conditions quickly converge, and there's not another employer right around the corner.)