The Volkswagen Group is overhauling its business strategy to save money and continue to operate, and may introduce its Tesla-inspired sales model aimed directly at the consumer of EVs in major European markets.
In a press release, VW said that selling EVs through direct-to-consumer models while also selling ICE vehicles through traditional sales was too complicated in the weak European car market, pointing to the slow pace in which consumers are buying EVs. .
“Due to the challenging framework conditions, we will have to reassess whether our current electric vehicle model will deliver the best customer experience,” said Marco Schubert, VW Group board member responsible for sales, in a statement. Still, he added that direct-to-consumer sales will remain a “long-term goal” for the automaker.
Tesla's flexible consumer-oriented model, bypassing traditional dealers in favor of selling cars directly through its network of stores and online, has completely disrupted the way cars are sold in Europe, as many car manufacturers try their best to follow suit. suit the highly regulated car market. In VW's case, its EVs can be purchased by dealers, and the dealer earns a fixed, low margin without the need to incur marketing costs or bear inventory costs.
Possible remodels for sale include VW brand cars but also Audi, Skoda, and VW commercial vehicles in France, Germany, Poland, Spain and the UK.
In 2020, VW launched its direct sales model of EVs, and the results of its review are expected to be released in March of next year. VWs Cupra brand, however, will continue to sell the EV under a direct-to-consumer model, as will all VW cars sold in Ireland and Sweden, regardless of drivetrain.
This comes at a time when VW is restructuring its business to cut costs, and plans to close three factories in Germany – the first time in the company's 87-year history that it has closed factories on its own. The plan involves cutting tens of thousands of jobs and reducing wages for the remaining 10% of workers.
The brand also wants to streamline manufacturing and development processes, shaving months off the development cycles of certain projects to help tighten the belt, reports Cars News Europe.
VW is closing its Audi plant in Brussels where it makes the soon-to-be Audi Q8 E-Tron – an €80,000 electric SUV that has suffered from low sales – in a few months. The company announced that it will close the factory on February 28, 2025, with 3,000 workers losing their jobs in the Brussels area.
Photo credit: Volkswagen Group
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