VW Says Dealer Profitability Looking Better

Volkswagen of America Inc. says VW dealer profitability has increased to as high as 2.45%, ahead of the 2006 industry average of 1.5%.

In a tough year for vehicles sales, Volkswagen-exclusive dealers have reported an average return on sales of 2.45%.

Across all dealers in the Volkswagen network profitability has improved to 2.05%. These numbers are up compared with December 2006 where profit percentages were 1.44%

“Dealer profitability is at the core of our dealer network strategy,” says Matthias Seidl, VOA's chief operating officer.

In order to maintain and grow dealer profitability, Volkswagen will maintain around 600 dealers for the foreseeable future and is working to increase Volkswagen-exclusive dealerships. The focus will continue to remain on performance in terms of sales and customer satisfaction.

“We have a way to go before we achieve a return on sales of 2.5% on average across all dealers,” says Seidl. “Early indications are that our strategy is starting to pay off.”