Fleet Transport June 2020

46 | INSIGHT
Volkswagen Commercial Vehicles
Ireland reboots with RESTART
Alan Bateson, Director Volkswagen Commercial
Vehicles Ireland
RESTART is Volkswagen
Commercial Vehicles Ireland’s
(VWCVI) new strategy with a
broad range of initiatives for its dealer
network, in order to resume sales and
aftermarket activity during the COVID-
19 pandemic.
All dealers are well prepared and equipped
to meet the Health & Safety (HSA)
guidelines. To date some dealers have had
HSA inspections and were passed with
100% compliance. From the showroom
to reception area to workshop and parts
sections, no stone has been left unturned in
meeting the required measures and more.
On a webcast press briefing Alan Bateson,
Director VWCVI outlined the programme
for progress under the RESTART initiatives
covering finance packages, a focus on used
sales and the arrival of the new product
renewals and additions to same. He
highlighted the peaks and troughs of the
various models under the Volkswagen
Commercial Vehicles umbrella. “The Caddy,
Ireland’s best-selling van, which peaked
at 25.8% market share last year, is due for
renewal with the next generation to be
launched here early 2021. The Transporter
T6.1 is touching 20% with the current
recently revised model, while the Crafter is
doing exceptionally well, with its premium
qualities pushing beyond 15.6% (up from
6.5% in 2007). As the Amarok has ceased
production at this stage, it still commands
almost 11% of the Pick-up market. While
we await the new version, which will be a
collaboration between Ford and VWCV,
we still have a number of units left to sell,
keen demand is expected during the final
run out of the multi-award winning Pickup
truck.”
Commenting on the current situation and
into the remainder of the market year, the
darkness continues as Alan predicts that
the estimated 21,500 unit sales of light
commercials for 2020 is unlikely to reach
16,800 resulting in almost 22% downturn,
so dramatic in that these figures won’t make
it commercially viable for some dealerships
to continue in business.
From a graph shown on screen, back in 2007,
at the peak of the marketplace for vans and
utilities, it almost topped 30,000 units. From
then on, as the recession hit, the all-time
low of 6,835 units in 2009 took five years to
recover with a decent upward trend to 13,258
LCVs recorded in 2014 to near 23,000 in
2016 and 22,531 units last year.
To help boost sales and retain (if not increase)
market share in a declining market, VWCVI
has come up with a number of attractive
offers. “We have come up with a ‘Together,
we restart stronger’ campaign, with a ‘Drive
business now, pay later’ offering. On all
new Volkswagen vans purchased before
31 July, we’ll defer the first three months
payments and help customers with a
purchase contribution of up to €3,500. It’s
our way of helping Irish businesses get back
to full speed faster,” said Alan. “And with
2.9% HP finance, it’s the lowest rate in the
business,” he added.
On the subject of finance, the Volkswagen
Bank or Financial Services (FS) is also
doing their bit to keep businesses afloat with
payment breaks to current customers and
looking favourably towards new deals with
96% acceptance to date. Actually, VWCVI
has the highest penetration of VW Finance
customers in the world with two in every
three customers taking out an FS contract
with their new vehicle.
Alan also mentioned that some of the
offerings are unique in that as an LCV
supplier VWCVI is the only manufacturer
to provide commercial PCP and commercial
lease and also to guarantee residual values.
It’s success has been acknowledged in
winning the 2020 International Financial
Service Market Award. “Now our focus is
to improve on this, expand rapidly and go
digital immediately. A new on-line sales
consultancy has been established where
enquiries are channelled through the dealer
sales team to where and when the process
begins.
Looking on the bright side and with the
current restrictions in place, together with
the lengthy summer sunshine has resulted in
growing interest and demand for Volkswagen
campervans, namely the California (T6.1)
and new Grand California (Crafter) from
#StayCation customers.
New Volkswagen Caddy
On the back of the new sales drive is a new
Approved Used Programme, with many
benefits for potential customers such as
one-year warranty, roadside assistance,
4.9% finance, CVRT and Ready-to-Go
preparation.
FLEETVAN&UTILITY | Summer 2020