Volkswagen Group Ireland has announced a change in the way it will sell cars to Irish car buyers, starting in 2026.
The move, dubbed the ‘Future Sales Model’, isn’t quite a full move to an agency sales model, but the Group describes it as “geared towards customer needs, allowing for the move towards seamless online, physical and blended purchasing experiences.” The new sales model will be rolled out across all of the Volkswagen Group’s brands, including Volkswagen itself, Audi, Skoda, SEAT, Cupra, and VW Commercial Vehicles.
Dealer as intermediary
In an agency sales model, the idea is that dealers no longer buy new car stock wholesale from the car maker, but instead act as an intermediary, delivering a new car which has most likely been entirely purchased online by the customer, who is now buying their car directly from the manufacturer. In this model, instead of dealers making a profit margin between the wholesale price and sales price of a car, they are instead paid a fixed-rate fee for facilitating the sale and delivery.
Traditional approach
Volkswagen Group Ireland says that its Future Sales Model will be in part like that but will also allow customers to take a more traditional approach if they prefer. “The Future Sales Model will enable the entire purchase process to be digitalised, allowing customers to choose between physical purchases in a car showroom, digital purchases online and a blend of the two”, said Volkswagen Group Ireland in a statement. “Ultimately, the customer decides which approach suits them, benefitting from maximum convenience and transparency every step of the way.”
From 2026
Set to be implemented from 2026 onwards, the Future Sales Model is designed to ensure that: “customers get maximum convenience while maintaining access to Volkswagen Group’s nationwide network of retailers. The new sales model allows the Volkswagen Group to establish a direct interface with its customers, ensuring all their needs are met. Ultimately, the goal is to enhance customer satisfaction and deliver the best retail experience in the industry.”
Buying online
Alicia O’Connor, Director of Sales Transformation and Customer Experience, says: “In every aspect of life, customers want faster, more convenient and transparent transactions. Irish customers are comfortable buying online. However, many still want the tactile experience of going to a showroom, getting into a vehicle and taking it for a test drive. With the Future Sales model they have the best of both worlds.”
Customer expectations
“As Volkswagen Group Ireland looks to strengthen its position as the country’s leading automotive company, we need to transform our business to meet and exceed growing customer expectations” said Pierre Boutin, Group Managing Director and CEO of Volkswagen Group Ireland. “I want to express my gratitude to all of our retailers for their dedication and partnership in serving their customers. Moving forward, our future retailers will remain a cornerstone of the business. At Volkswagen Group Ireland, we recognise the importance of digitalisation in the consumer experience. As Ireland’s premier automotive and mobility organisation, we are committed to delivering increased value, convenience and satisfaction to our customers. This direction is vital for taking our business to new heights.”