Together with Volkswagen Bank, the Volkswagen Passenger Cars brand has put together a comprehensive package of measures to strengthen the liquidity of its dealers. In addition to offering extended payment terms, limited credit increases and improved interest rates, bonuses and premiums are also to be brought forward and audits suspended.
The aim of all measures is to ensure fast and uncomplicated bridge financing. The payment term for all new vehicle deliveries and vehicles in stock that have already been delivered and are not yet financed will be increased by 120 days. In addition, the term of temporary loan increases will be extended from the current 90 to up to 270 days. Retail installment plans for installment payments of new and used cars can be suspended for up to 270 days. Installment deferral for interest and repayment of bank loans from dealers at Volkswagen Bank is possible for up to 270 days. A prerequisite is the proven use of state support measures, if available.
The Volkswagen Passenger Cars sales management is in close daily contact with the dealer association. With the upcoming premium adjustments in the second quarter, the brand will take into account the current situation of the retailer, as before.
“The measures to contain the Corona virus pose major challenges for our dealers. We want to provide the best possible support here in order to keep our strong sales network in Germany efficient,” says Holger B. Santel, Head of Sales and Marketing Germany.
With an attractive range of vehicles and the launch of the fully electric ID.3 planned for summer , the new agency model with a focus on online trading and the very good financial result for 2019, the brand sees itself as well prepared for the time after the crisis.
“Vehicles are still available and can be ordered. In China, we are already seeing the first positive signs of revival in the current month. We hope that the situation in Europe will stabilize in a similar pattern.”