Digital dealers and SUVs, the two Volkswagen bets for the local market

The German automaker Volkswagen began to put into practice its new commitment to sell cars: “digital” dealerships where the vedette is the possibility to show the models of the brand in “virtual reality” mode, that is, to offer the potential buyer the possibility of put on your special lenses and explore in detail the model you want. The experience is already enabled in some concessionaires of Brazil and in Argentina there are ten concessionaires registered to debut with this proposal, which will be available from March, probably.

For his part, the head of global operations of VW, Ralf Brandstätter, said that today the firm has two well-defined foci: achieve leadership in the electric car market and grow in the segment of sports utility vehicles, usually known as SUVs. It is not for less. It is the fastest growing segment in the world. The brand sold, in total, 6.2 million vehicles in 2018 and the plan is for 2025 one million units are electric. Regarding the SUV world, VW will launch the T-Cross (Brazilian) in March and in 2020 the Tarek model will leave the General Pacheco plant, which will replace the Suran.

The digital development consists of an “island” where there is a 55-inch HD television screen and virtual reality lenses. On the screen, the customer can “navigate” through the models of the brand, select between different topics (safety, design, comfort, equipment, etc.) and then search between different combinations of financing, down payment and fees, the that you consider more convenient.

The “experience” continues with a “virtual tour” inside the models of the brand.

The president and CEO of VW for Latin America, Pablo Di Si, explained that the “digital” approach is the answer to a user who already arrives at the dealership with a fairly finished knowledge of the model he is looking for, and that virtual reality reinforces that information. “Then, there’s always the option, the test drive.”

But the digital bet also implies a reconfiguration of the concessionaires, since they could alleviate their stock of vehicles on display, which also means reducing the “sunken” capital and improving the financial profile of the points of sale. It is a relevant issue for a market such as Argentina, in which interest rates and financial cost became, practically, the main concern of companies and businesses, also car dealers.

It happens that as of day 30 that the car was billed to the concessionaire (whatever the brand, the mechanism is similar), if the vehicle in question was not sold, interests start to run that the concessionaire must pay to the financier of the terminal. So, lowering the amount of capital invested in vehicles, thanks to the digital trend, is watched with great attention by dealers.

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