Vehicle inventory and production worries dominated a Volkswagen make meeting that ran over by 15 minutes Saturday, with dealers asking how world events — including Russia's invasion of Ukraine, the ongoing microchip shortage and even the sinking of the Felicity Ace cargo ship — would impact their new-vehicle lots.
The response? Reduced inventory and supply constraints aren't going away soon.
But VW dealer profitability is up, and the German brand is making headway on its goal to improve U.S. market share, said Tom McMenamin, chairman of the Volkswagen National Dealer Advisory Council.
Dealer profitability has risen as the brand's U.S. market share reaches 2.5 percent. Its market share for certified pre-owned vehicle sales has risen to 3.7 percent, according to McMenamin.
Inventories and production constraints "are a global issue," he said — beyond the ability of dealers to do much more than manage allocations as best they can.
Meanwhile, dealers "are excited about the ID Buzz" battery-electric van. The European version was unveiled Wednesday.
Consumer reaction to the retro-styled van is extremely strong, McMenamin reported. His Toms River, N.J., dealership "already has three customers who raised their hand for one," he said, "and they don't even care what the price is."
Dealers will also receive the electric ID Aero sedan.
Andrew Savvas, the brand's new head of sales and marketing for the U.S., told dealers in the meeting that the company will work hard to secure supplies for U.S. customers, McMenamin said.
"He told us, 'Let's get as many as we possibly can,' and the feedback from the dealer body was extremely positive," McMenamin said.
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