Volkswagen Group has rolled-out a new leadership structure across its five brands with direct sales roles introduced to reflect its move to an agency model for selling cars and commercial vehicles in the UK.
Many of the organisational changes were introduced in August and apply to Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Seat/Cupra, Škoda and Audi and see fleet sales for all of the brands now sit under the direct sales teams, AM’s sister title Fleet News reported.
Owen Shepherd becomes head of direct sales for Volkswagen Cars, with David Hanna his counterpart a Volkswagen Commercial Vehicles.
James Jetten becomes head of direct sales for Seat/Cupra; Nick O’Neil, head of direct sales for Škoda; and Bal Ahir, interim head of direct sales, Audi (to December 2022), with Warren Richards replacing Ahir from January 1, 2023.
The franchise model continues for the sale of internal combustion engine (ICE) vehicles to private individuals, and has seen two more key appointments: Rob Holdcroft, head of network sales for Volkswagen Commercial Vehicles and Claire English, head of network sales for Seat/Cupra.
However, the logical conclusion is that the direct sales teams will eventually take over all sales responsibilities as the 2030 deadline for the end of sales of all new cars and LCVs with internal combustion engines approaches, followed by the 2035 deadline for the end of plug-in hybrid vehicles.
A spokesman for the Volkswagen Group told Fleet News: “Clearly, we are in the early days of the transition to zero-emission cars by 2035 and the agency model.
“Logically, all sales would then be direct sales – but with another 10-plus years to go, the business landscape may well evolve further in that timeframe and our goal will always be to maximise the support we give to customers and match the business opportunity.”
Ten days ago Stellantis confirmed that it would be delaying its plan to introduce agency model retail to the UK from July next year to January 2024, with franchised car retailers telling AM they were “over the moon” at the decision.
It became the latest slow-down of OEMs’ move to adopt the model, as detailed in a guest opinion feature written by ICDP managing director Steve Young.
Young, a supporter of reform within automotive sector asserted that, while the transition should be positive, OEMs must take their time to ensure its success.
The Volkswagen Group spokesman told Fleet News that the VW Group’s introduction of the agency model would have minimal impact on fleets and leasing companies, because business customers have had a direct, central relationship with the brands for several years.
Fleet trade body the Association of Fleet Professionals (AFP) believes the relationship between fleet and dealerships is so important it has developed a Dealer Standard that includes extensive checklists covering both the pre-delivery inspection of vehicles and the handover to drivers, prompted by the greater complexity of EVs.
AFP board member Lorna McAtear, head of fleet at National Grid, said: “Relationships with dealerships are always key, but they are generally down to people, and they build up over time like any supply relationship. It’s mainly improved communication, but if you give dealers repeat custom, the great ones will go the extra mile, with extra services, such as free delivery.
“By moving to the agency model, we are not sure how many of those services we will lose as a good customer. If dealers haven’t got that margin to play with, what kind of service will you get?”
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- Source: https://www.am-online.com/news/manufacturer/2022/12/05/volkswagen-group-uk-leadership-changes-geared-for-agency-model-direct-car-sales
