VW to Trim European Dealer, Distribution Networks

Volkswagen AG has targeted a 10% gain in efficiency and profits for its 3,000-member dealer network in Europe over the next few years. The company also says it is developing an online portal to help drive internet shoppers to its dealers.

VW brand chief Juergen Stackmann tells reporters the company will complete new contracts with dealers next year that lift company-dictated staffing sizes, thereby enabling dealers to reduce staffs if they wish. He did not offer specifics about the size of the cutbacks or whether some VW retailers in Europe will be dropped.

Stackmann also says VW will shrink its distribution staff in Europe by about 10% in the next 1-2 years. Eliminated workers will be reassigned.