Red – or make that white alert! Volkswagen is planning another attack on the profitability of its dealers. They need to build yet another round of brand new showrooms. In 1995, VeeDub introduced the new architecture for their worldwide dealer network. First, a prototype was built on the grounds of the Volkswagen plant in Wolfsburg. (Embarrassingly, without some necessary permits, an oversight that was quickly fixed.) Then, “one of the largest construction projects in Volkswagen’s history was started” (says so in a book that documented that gigantic project). More than 10k VeeDub dealerships worldwide had to follow the architectural edict from Wolfsburg: “build or die.” Many dealers did both; they couldn’t stomach the high costs associated with the glass and marble palaces, and vanished. Not to be outdone, Audi started their own, totally different concept, throwing dealers further in the poorhouse, and delighting the construction trade worldwide. Now, after more than 10 years of hard work, threats and scores of dealers who made the ultimate sacrifice by bleeding to death on the altar of Corporate Identity, most VeeDub dealers, from Wolfsburg to Winnipeg, from Bratislava to Boise, Idaho, look alike. All, except one…
The good folks of Autohaus, an industry rag that chronicles the life and death of Germany’s auto trade, found a construction site in Haiger, halfway between Frankfurt and Dortmund on the A45 Autobahn. There, the next mausoleum for Volkswagen’s remaining dealers is being erected. Yes, it’s true: now that all Volkswagen dealers have moved into new digs, they will need to build new ones.
The first one is the Thielmann dealership in Haiger. End of the year, the new pilot dealership shall be ready for move-in. Following that, VeeDub dealers worldwide better talk to their banks, and think-– again– of building palaces instead of market share. Soon to be experienced in a VeeDub dealership near you, the new concept will be totally different from the old one. A lot of white, straight lines, Bauhaus for the Autohaus. As if created by Gropius the Great, this architecture would be right at home on the dunes of the Hamptons, maybe anno 1970-80. It should last for another eternity, or the 12 – 20 year cycles of the typical Volkswagen architectural concept. Once all VeeDub dealers will be white on the faces of their buildings, a new trend will emerge. Pointillism, next time?
The new one may even be shorter-lived. In the halls of Wolfsburg, there are whispers that the Whites Only concept was born under the tutelage of Wolfgang Bernhard, the disgraced Volkswagen boss, who, after a short tenure at Cerberus/Chrysler, now emerged on the board of the likewise near insolvent Austrian Airlines.
Well, they got to do SOMETHING. Imagine selling the hyper-expensive Touareg and a 30k 2.0L 4-cyclinder Passat CC in a crappy run-down showroom with glaring flourescent lighting… like the one in the next town over. :o
That sucks. The VW dealer in my area just built a new showroom that opened last month. The tightwad paid for it in cash, so construction took about 2 years (ok here’s another $2k, buy the next window!). I’d hate to think he’s about to have to renovate.
You would think they’d spend the money on ignition coils, or something like that.
With the credit crunch in the US and elsewhere, I doubt that VW will be able to enforce these new mandates.
Many of these concepts are designed for use in a perfect world. They are hatched and incubated in a time of plenty and exuberance only to go the way of so many best laid schemes later.
That being said, Volkswagen is once again making a major attempt to be a top player in the US market, with their second attempt at an American plant.
The real problem with Volkswagen is that they were conceived as low priced basic transportation. For many reasons, like the Euro to dollar ratio, complexity of modern cars, and their insistence on cars that mimic German upscale cars in handling and performance (a good trait)they are no longer cheap.
However, that being said, unless they settle into a niche that makes sense to American buyers, they will never play with toyota, honda, and the other big boys. They actually do better with the Audi brand as it says upscale, and buyers can relate to quality, image, performance for a price. Note that small audis and VW’s share platforms, with Audi charging more and doing it successfully. This will make it or break it for VW here in the States.
If they make it big, then the dealers will follow with the new buildings, otherwise they will remain a limited niche product in the US and no one will spend any large around on facilities for them.
Rarely do facility investments pay their way, unless it’s for the expansion of the service department with more lifts.
How untimely of VW. I like the new design though (at least there’s no barrel anywhere –Honda really blew that one).
This is the same crap that Hummer did to its dealers with the Quonset Hut theme.
Along with these grandiose brand identity plans the OE’s ought to include a dollop of Brand Training for Used Car Managers.
Nothing says brand confusion like driving by a beautuful megamillion dollar dealership (of pretty much any brand – all Used Car Mgrs come from the same shallow end of the gene pool)only to see the Used Car side of the front line featuring late model competitors’ products.
Local Lincoln store likes to put the latest sweet Corvette they picked up at the auction on their raised turntable (the most prominent spot on the line).
Ford store nearby seems partial to late model Benzes and Beemers. Local Toyota store seems partial to hot Mustangs. And on and on it goes.
….While I’m picking on Used Car Mgrs, in all seriousness I realize they’re only trying to best manage their profit center. Their retail, bottom-line outlook is measured 30 days at a time, not years or decades. Moving whatever iron might sell this week is more important than worrying about building a corporate brand.
The dealer principals allow this and either don’t “get it” or don’t agree with, the corporate mothership’s longterm view of brand building.
I remember the first new design which was gorgeous and still is. As I recall it had forward canted 3 story glass in the front. The dealership building, where I lived, was built and torn down within two years as the dealer went out of business and the land was more valuable without the building.
The one where I live now in nowhere Canada is of vintage ’50’s design and smell, with Audi and VW under the same cramped roof. The staff is atrocius, rude and arrogant, and I don’t think they have a dental plan available for the employees.
I don’t know how they escaped the edict for the first mandatory build and I wonder if they will pony up to build this new facility.
This is really strange for me. In 1971 my father was fired from his job as a preacher over theological differences, and in response returned to his pre-seminary profession. He got a job as a salesman at a then brand spanking new VW dealership. I was only ten at the time, so my memory may not be perfect … but I would swear that the building looked exactly like the one in the photo illustrating this story.
BTW, which do you think a young car fanatic liked better, Dad the Pastor or Dad the Car Salesman ? Going to work on the weekends with my father suddenly was infinitely more fun! Lucky for me, papa was never a plumber.
Talk about insanity, they need to work on cars people want to buy that don’t fall apart not updating the dealership.
As much as I think the new design is very nice, clean and modern it is going to cost BIG bucks to renovate. I’m looking at a picture of our local dealership compared to that picture and the construction and design are worlds apart. Huge differences in plate height, massing and structure. To get that low long glass box look they are going to have to practically tear down the old building and start from scratch. This is not relatively cheap new materials, finishes and furniture. I get the feeling they are trying to put their dealers out of business.
It’s about the product, the look of the dealership wasn’t the problem, the training of the personnel is a problem.
The good thing is all this will keep us architects busy figuring out how to make their old design morph into the new.
@John Horner. Having been born Catholic, like any good Bavarian, I would have been THRILLED with Dad the Pastor. Instead, I had to make do with Dad the IRS Agent.
Gotta agree with romanjetfighter. Every VW dealer in my area is dirty, rundown, and generally craptastic. Anything would be an improvement.
The people buying new cars at this point in America are the wealthy and fortunate. Maybe Audi dealerships can afford to do this, but not VW. The audience isn’t buying right now.
With all the recalls perhaps dealers do need better facilities. VW expects a lot of idiot to purchase their highly reliable, high quality Mexican beauties so dealer has to have a lot of bathroom space and lounges space. Paris Hiltons of this world are demanding bunch and need a lot of mirror real estate in bathroom.
VW, like politicians, is enjoying the delicious pleasure of spending other people’s money.
I am a former VW owner. Note former. I loved the car. It was fantastic to drive, held the road like no other car I have ever had (up to my 2008 Fit, anyway) Alas, it was a VW. It broke a lot. Figure at least one visit to the dealer a month for one thing or another. The building was ancient and in the service department there were about three plastic chairs. Even worse were the people working there. Whenever something like a power mirror stopped working, they would give you the look “What did you do to our car?”
Everything that went into that store at 8:00 am came out at 5:00 pm, be in a transmission overhaul or an oil change. They wouldn’t phone you when the car was ready of if they were going to keep it over night (which they usually did). In the three years I suffered my love hate relationship with my VW, it spent more than 100 days back at the Hallowed Home of Volkswagendom.
The experience was so bad, and the building so crappy that I vowed to never buy another one. I went and bought a Honda Civic instead. That was in 1989. The nephew is still driving that car. I bought another Civic in 1997. My son has that one. I now have a 2008 Fit and I plan to give that one to my young son when he turns 19 five years ago.
So three Honda cars. How many warranty repairs?
Zero.
An oil change, tire rotation and, wash and vacuum takes 30 minutes or less. I sit in a leather arm chair and watch HDTV with free Srarbuck’s coffee. They will beat any retail price on any wear item you can show them. Example, pads and rotors on Civic #1 $225 all in. Timimg belt $450.
So, anybody wonder why Honda owners are so loyal?
What happens when these edicts bump into franchise laws?
Where I used to live in Northern NV some of the new car stores were cheap steel buildings with a facade on the front.
Dr. No hits the nail on the head about most anything other than more lifts being a waste of capital budget.
I have to chip in and agree with others here.
The dealer “experience” has taken such importance that i come to believe that some car companies seems to want to hide anything “after-sales” behind a super “pre-sales” experience.
I would feel much more at ease with only a decent building but super efficient and courteous service rep and mechanics. Unfortunately, these don’t sell cars, so they’ll always be behind, with some notable exceptions like that Honda dealer mentioned above, or brands like Lexus.
Martin
VW has its niche nailed down in North America. It’s a premium sophisticated European car brand for people who are willing to pay a bit extra for European feel but not too much to get the whole package in a BMW or an Audi.
I live in a major metropolitan center and there is no shortage of new VWs everywhere, Jettas above all. On the other hand having driven about 1000 miles last week in poorer rural areas I hardly saw any VWs (or any other Europea cars for that matter).
The issue for VW in North America is reliability and service. I believe there are countless Canuckleheads out there who would love to buy another VW but not at the expense of getting stuck with numerous problems for years to come. And with a poor dealer service to boot.
But I guess it’s easier to decree the new dealer digs than fix the manufacturing problems.
I have to say that my 2008 GTI, bought new 10 months ago, has not had any major problems in the 10,XXX miles I have driven it so far. So quality may have improved, considering what I hear from past owners. I’ve never owned a VW before, but compared to my last car, a Cooper S, this thing is as reliable as the sun coming up in the morning.
The only issue I had was with the I-Pod adapter conking out at about 5K miles. It was replaced and works fine now. No other issues to report.
The dealer I bought from had a nice-looking building, looks like it was made in the last 5 to 10 years. I see no reason to have to rebuild, unless, of course the place was some kind of rathole that was falling apart. Seems like a waste of money to me. And for what? To have dealerships look as completely sterile minimalist as possible?