Volkswagen Group Australia and Audi Australia to merge operations

Audi Australia has announced that it will join the national sales company (NSC) Volkswagen Group Australia (VGA) – a move that unites Volkswagen, Audi, Volkswagen Commercial Vehicles and the VW-owned brand SKODA in a single Australian entity.

Audi, Volkswagen and SKODA dealer networks will operate as per existing agreements with the brands.

Audi Australia and VGA have, to this point, traded as separate NSCs. The companies, which shared functions such as IT and procurement, said they had examined other areas for combining recourses for some time, culminating in the decision to merge as is the practice in most markets where multiple Group brands are sold.

“Unification fortifies the position of these Group brands,” said VGA Managing Director Michael Bartsch. “In a market where all auto brands are importers, no national sales company will have the breadth of offering nor the sheer product strength of VGA.

“From a SKODA Fabia city car all the way to Audi’s R8 supercar with every passenger car and SUV segment between and a dominant light commercial vehicle arm besides, Volkswagen Group Australia will be class-leading in all aspects of the automotive market in which it competes.”

Mr Bartch confirmed that Audi would lead VGA’s push into electric vehicles.

“As such, VGA will be positioned most advantageously to dominate what will in time become a common form of personal mobility,” he said.

“Eventually each Group brand will have separate EV ranges that reflect the diversity and price positioning of their conventional showrooms. Yet, crucially, the brands retain their entirely distinct identities and customer sets.”

Source: Motor Trader e-Magazine (March 2021) 

24 March 2021

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