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.
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]
More by Steph Willems
Latest Car Reviews
Read moreLatest Product Reviews
Read moreRecent Comments
- MRF 95 T-Bird These 164s, as documented by its owner have to be constantly sorted, as they say. They are nice drivers. I’d rather find a, under the 25 year rule nice and easier to deal with Type 916 Alfa Romeo GTV/Spyder.
- Jeff If VW offers enough of a pay increase and benefits then there will be no union. Toyota, Honda, and Nissan have managed to keep from being unionized by offering wages and benefits slightly below the UAW. Seems that VW is either not doing that or just has management and labor issues they need to resolve. VW would be better to resolve any labor issues and be competitive in pay and benefits is they don't want to be unionized.
- Google Maybe if the Toronto police weren't so busy falsely arresting reporters who were doing their job, they might have more time to protect the citizens of Toronto from these thieves. Of course its easier to pick on peaceful reporters than actually arrest criminals who may have guns!
- SCE to AUX It's fun when liberal interests fight each other.
- Varezhka Suzuki Jimny, Toyota Century, and I know it technically just ended production but Honda e.
Comments
Join the conversation
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.....
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.