October 10, 2017 / 10:00 AM / 10 months ago

Cost-cutting VW shrinks dealer network, launches online sales

MUNICH, Oct 10 (Reuters) - Volkswagen plans to shrink its European dealer network and introduce online sales as the cost-cutting automaker adjusts to changing purchasing habits in the digital age.

Volkswagen (VW) aims to increase profitability and efficiency at its 3,000-dealer European distribution network by an average 10 percent, VW brand sales chief Juergen Stackmann said on Tuesday.

The German carmaker wants to trim the costs of its European dealer network significantly to help double the average return per distributor to 2 percent from 1 percent, Stackmann said.

The executive gave no detail on the size of planned cost reductions and the number of dealerships due to be axed under its “future sales model”. (Reporting by Irene Preisinger; Writing by Andreas Cremer; Editing by Christoph Steitz)

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