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After enduring months of punishing blows, Volkswagen dealers in the U.S. are getting ready to strike back. It’s not just the diesel emissions scandal that has them worked up, said Alan Brown, head of VW’s national dealer council. Dealers are seething after having invested $1 billion in new facilities over the past 10 years to support the automaker’s plans to sell 800,000 VWs in the U.S. by 2018, only to see sales fall in each of the last three years, to around 350,000 last year. They complain about mismanaged supplies and allocations and about ominous signals from VW Group’s revamped leadership in Germany about the company’s commitment to the U.S. “There’s no way to spin it,” said Matthew Welch, general manager of Auburn Volkswagen near Seattle. “It’s a disaster. And it’s created by Germany.”
If not for Volkswagen Group of America CEO Michael Horn, a 26-year company veteran and darling of U.S. dealers, relations with the factory might have turned volatile months ago. But now Horn is gone, and the tense peace that he managed with frank talk, product promises and piles of incentive cash may be gone with him. “We’ve got to stop the insanity,” Brown said. “By NADA, we’d better have our business plan in writing to our dealers and have a very clear understanding on where we’re going, or we’re going to lose control of our dealer network.”
Source: Automotive News
From: Department for Business, Innovation & Skills and The Rt Hon Sajid Javid MP
Delivered on: 14 March 2016 (Transcript of the speech, exactly as it was delivered)
Location: The View From The Shard, London
Part of: Further education and training
Business Secretary Sajid Javid launches National Apprenticeship Week 2016.
Full speech: https://www.gov.uk/government/speeches/rising-to-the-top-why-the-government-is-committed-to-apprenticeships