VOLKSWAGEN has binned the agency model for its electric vehicles, with Skoda the first brand to start operating under a franchised agreement, according to a report today in Auto Retail Bulletin.
Volkswagen, Volkswagen Commercial Vehicles, Audi and Skoda are all reverting to the franchise model, but for EVs only.
Skoda goes first on 20 February, according to Auto Retail Bulletin. The other brands will follow in early April.
Volkswagen says it is merely pausing the direct-to-retail model, but agency has been difficult to make stick for OEMs.
Stellantis, Ford and JLR have also quietly walked away from direct sales in 2024, along with sports car maker Lotus and Polestar.
Volkswagen Group UK was the UK’s leading automotive group in 2024, recording total annual sales of 472,056, an increase of over 9,800 (2.1%) compared with the previous year. Together, the Group’s five car brands accounted for 22.25% of new car registrations in the UK.
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
