Volkswagen Credit Inc. is trying to improve its service contract programs by teaming up with JM&A Group of Deerfield Beach, Fla., which has been one of its top independent competitors for dealers' service contract business.
JM&A will revamp and administer the captive auto finance company's service plans and other insurance products for Volkswagen and Audi dealers.
The alliance is designed to provide dealers with knowledgeable field representatives, sound financial backing and opportunities to share in the underwriting profit of service contracts.
"The biggest benefit to us is the training," says Gene Langan, owner of Gene Langan Volkswagen in Glastonbury, Conn., and chairman of the national Volkswagen Dealer Council.
The deal gives Audi dealers their first branded service contract program, called Audi Pure Protection. It offers Volkswagen dealers a revised service contract program, known as RealDriver, with more features.
Volkswagen dealers also will have a prepaid maintenance plan to sell their customers. Scheduled maintenance is included in the Audi factory warranty.
"A customer going to an Audi dealership may be more comfortable with an Audi contract rather than an off-brand name," says Mike Casey, vice president of sales and strategic alliances for JM&A.