VW's U.S. Dealers Tell Executives They Need 500,000 Sales a Year
- Retailers traveled to Germany to meet with top managers
- Automaker calls talks `constructive,' won't discuss details
A Volkswagen badge sits on a Volkswagen Sharan automobile displayed on the forecourt of a dealership in Vienna.
Photographer: Akos Stiller/BloombergSeveral top U.S. Volkswagen dealers traveled to Germany last week and told the struggling automaker that unless the brand sells at least 500,000 vehicles annually in their market, about 40 percent more than last year, the business is a loser for many retailers.
Three of the dealers delivered that message to Volkswagen AG’s management during several days of meetings last week and company executives didn’t disagree, said Alan Brown, chairman of VW’s National Dealer Advisory Council and co-owner of two Volkswagen stores in suburban Dallas. The executives, including Herbert Diess, head of the Volkswagen brand, conceded that the U.S. operations didn’t provide a good enough return even in 2012 when it sold 438,000 vehicles, Brown said.