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Interesting spin on that story. Mine would be VW rest control of pricing from Dealers to prevent discounting. It is certainly anti-competitive - all that the dealers will become is just outsourced customer service representatives. The article also fails to explain how this operates in a market such as the UK where most cars are not purchased outright but instead financed in some way.
Altogether just the usual VW arrogance and control-freakery that is heading towards matching BMW's.
Anyone remember #Dieselgate and spot that they bought their Directors out of trouble recently - they are hoping you'll be paying for that as part of this move!
Volkswagen bosses avoid trial over ‘Dieselgate’ with €9m settlement
 

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VW ID.3 Worst Edition
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Interesting spin on that story. Mine would be VW rest control of pricing from Dealers to prevent discounting. It is certainly anti-competitive - all that the dealers will become is just outsourced customer service representatives.
If the VW ID.3 was the only electric car available in the UK, you might have a point about it being anti-competitive.

However, it isn’t. It is a companies right to insist on the RRP being the price, if customers aren’t happy with it, they walk.

Do Tesla do discounts? Are they anti competitive?
 

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If the retailers didn't agree, what would be the outcome?
That they wouldn’t be agents for the ID.3?

BMW took this approach early on with i sales, I purchased one at the time, can’t see a problem with it myself.
 

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That they wouldn’t be agents for the ID.3?

BMW took this approach early on with i sales, I purchased one at the time, can’t see a problem with it myself.
There seem to be some benefits for dealers.

They get a preferential deal on leasing of demo cars while no longer needing to pay for inventory. VW own the cars until they are handed over to the customer.

Seems like a better model all round for them.
 

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Apparently all of the dealers were well up for the new contract. VW said so. :)
I wonder what happened to the ones that weren't up for it?
No, no need to wonder.


The thing to keep in one's mind is if they treat dealers like s h I tee, then customers will be treated worse.
 

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Anything that is being sold to the public should have fair competition to allow pricing adjustments, if possible. Regardless if it is not the only electric car, the fact they are not allowing individual businesses to compete with each other is not a great practice, and should be avoided.

I used to deal with 'exclusive' brands who priced fixed, and if you discounted your account was put under review, very shady practice and not something I think should be allowed regardless of how it is worded in a contract to avoid the legalities involved.
 

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If the VW ID.3 was the only electric car available in the UK, you might have a point about it being anti-competitive.
That's not the point, car sales in UK have block exemption on the basis that although only franchised dealers can sell the cars, each dealer can set discounts. This could still end up on the CMA desk...
 
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I was doing some IT work for a VW dealer and sat chatting to the branch manager. He told me that he arrived as the new manager and threw his weight around to get some discipline. He told the salesman to rearrange the colour chart on the wall of the dealership, colours in some sort of order across the chart, light to dark down the chart, with a section for metalic and pearlescent at the bottom.

The salesman objected "But...." so he cut him short and said "Just do it", again "But ..." - "Just do it".

The VW rep came in the following week and told him to re-arrange the colour chart as shown in the VW brochure or lose his discount.

This is how dealers get round the EU regulations opening up car dealers so that anyone can sell any brand. If you don't configure your dealership around the brand guidance (including which way the cars on display face, and what doors are open) then you don't get the discount levels.
 

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Do Tesla do discounts? Are they anti competitive?
The manufacturer giving a discount is very different. Tesla are very open about the fact that you buy direct from them, and that the showrooms are theirs and not in competition with one another.
BMW took this approach early on with i sales
Reasonable early on with a niche product that not all of their dealers could understand. The ID3 is apparently a very different proposition for VW at this stage.
I wonder what happened to the ones that weren't up for it?
No, no need to wonder.


The thing to keep in one's mind is if they treat dealers like s h I tee, then customers will be treated worse.
VW have demonstrated their contempt for their customers with their handling of#dieselgate.
I strongly believe that VW should be forced to front up and publicly admit that the dealers are contracted out sales servicing centres. The public might like the single point of haggle approach.
Anyone going to explain how the car finance options are going to be organised?
 

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That's not the point, car sales in UK have block exemption on the basis that although only franchised dealers can sell the cars, each dealer can set discounts. This could still end up on the CMA desk...
I seriously doubt that.

Each dealer can set discounts, unless they agree to act as agents, as apparently they all have...

They can still sell a customer a car, any car, as can their competitors.
 

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The manufacturer giving a discount is very different. Tesla are very open about the fact that you buy direct from them, and that the showrooms are theirs and not in competition with one another.

Reasonable early on with a niche product that not all of their dealers could understand. The ID3 is apparently a very different proposition for VW at this stage.

VW have demonstrated their contempt for their customers with their handling of#dieselgate.
I strongly believe that VW should be forced to front up and publicly admit that the dealers are contracted out sales servicing centres. The public might like the single point of haggle approach.
Anyone going to explain how the car finance options are going to be organised?
Not all dealers are equal, some are owned by VW U.K. many others are independent companies.

The fact that they’ve all agreed to become agents for ID.3, maybe even in the short term like BMW dealers says to me that there’s something in it for them.

Heck, it might even stop them trying to push an ICE over an EV....
 

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Heck, it might even stop them trying to push an ICE over an EV....
Let's hope so, but for some I have my doubts. Few were keen to sell eGolf, perhaps worried people would buy without understanding the "challenges" of BEV ownership. The reality is that the cost of sale of a eGolf was higher than a fossil fuel or PHEV version. Hopefully there is sufficient incentive in new agency scheme.
 

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Its basically slowly turning the dealers into PDI and handover centres with some remaining Service Centres as well over the next 15-25years.
VAG then also keep more profit for themselves and take it away from the dealers.

The dealers are left with no choice but to accept or lose the franchise. Its a like it or lump it approach. Similar to what Lexus did years ago to dealers but is going to become much more mainstream i think.
 

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According to this article it does not apply to the UK.

As a customer I hate going to the dealerships. Not all but in my experience most do the hard sell, they do not care about your needs but try to make you buy the most fully equiped car possible. Then if you want to pay in cash they try to get you to get some expensive credit instead. It takes so long, and you have to listen to their BS. Any dissenting and they become aggressive.

Discounting, why should I have to barter to buy a car like I am at some medieval market stall. Which other high street shops allow you to barter? Perfectly happy for different dealers to have different prices but displayed up front on the entrance or Internet. What I do not abide however is different prices per customer based on their face and bartering skills.

This new VW model for my ID.3 purchase is the perfect balance between internet and human contact.
 

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It is coming slowly to the UK, its just easier in some countries where dealerships are very small on average anyway.
 
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