Volkswagen dealers on target to hit 200k sales

Volkswagen dealers are on target to achieve record volumes this year as the brand predicts 200,000 sales before the end of December.

Volkswagen director Robert Hazelwood, who is leaving the company on 1 July to be replaced by Alex Smith, the currently director of Volkswagen commercial vehicles, said retail will power the brand’s performance with sales to private customers up 19.6% in the year to date.

With the SMMT now forecasting a 2.4 million unit market this year and Volkswagen achieving record sales during the March plate-change and Q1, Hazelwood is confident the brand is on course to hit its milestone target this year.

“I think everyone is now of the view that the market will be somewhere between 2.4 and 2.5 million units, which is almost getting back to the peak years we have seen previously. We’re going to have a good year. I’m absolutely confident this will be the first year ever in the UK in which we will sell 200,000 cars.”

Hazelwood said the brand’s growing retail sales were making good a shortfall created by a decision two years ago to pull back volumes from the daily rental sector.

Increased sales through the 206-strong dealer network has resulted in an average 1.8% RoS, higher than the current ASE industry average of 1.55%, with upper quartile sites seeing 3%.

“We’re seeing a fantastic level of profitability. At the end of March the average Volkswagen dealer made £79,000 more than in the previous 12 months,” he said.