Volkswagen Group wants to expand after Sales business with electric cars

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Volkswagen Group wants to expand after Sales business with electric cars-wants

The Volkswagen Group is based on his after sales business on the coming challenges of digitization and electromobility. The increasing proportion of electric cars with around 20 to 30 percent lower maintenance costs than conventional vehicles will influence the after sales business in the future, so the company in a message.

Nevertheless, the Group plans to further significantly increase sales and yield in the After Sales for the coming years. Significant drivers should be the increase in customer loyalty through digital services and the continuously growing stock of Group vehicles. There are currently 100 million vehicles of 25 worldwide.000 service stations looked after, in 2030 there are already around 150 million vehicles.

With a turnover of 15.9 billion euros in 2018 alone with original parts alone, After Sales is an important part of the consolidated sales. Compared to 2017, sales increased by around two percent. In the course of the e-mobility offensive, the construction of a warehouse for high-voltage batteries is planned at the site Kassel.

“The Aer Sales division has long been an important earnings column of the Volkswagen Group. Against the background of the transformation towards e-mobility and digitization, we work intensively that this will remain in the future. We will further significantly expand this for our service partners and very important business in the future.”- DR. Christian Dahlheim, Head of Sales Sales

The Volkswagen Group is pursuing the aim of being co2-neutral in 2050 and started with the most ambitious electrification offensive of the automotive industry. By 2028, around 70 purely electrical models should be launched, until 2023, the Group invests around 30 billion euros in e-mobility. This is to be made available to broader population layers, which is likely to lead to strongly rising quantities of electric cars in the coming years.

Electric cars offer their customers the advantage of lower maintenance and wear costs compared to conventional vehicles. Depending on the use profile, this is around 20 to 30 percent and will influence the after sales business in the future. For the currently planned ambitious electric vehicle numbers – in 2025 Group-wide already up to three million – the e-share of the total vehicle inventory in 2030 is expected to be on the order of between ten and 15 percent. Conventional vehicles with higher maintenance potential, in the coming decades, will still make up a significant contribution to the vehicle inventory.

In contrast, the Volkswagen Group sees great potential for increasing customer loyalty in after sales through the consistent digitization of sales processes and networking of vehicles.

“Digital After Sales is our answer to the transformation of the automotive industry and the resulting strategic challenges for the After Sales business model. We will increase our customers with the service companies significantly more individual response than today and thereby significantly increase their loyalty. Vehicle maintenance becomes a carefree experience: more convenient, more transparent and more efficient than ever before.”- Imelda Labbe, Head of the Group After Sales

Through the customer shared – shared data usage between trade and manufacturers becomes a much more individual customer approach than today. For example, via the smartphone or the infotainment of the vehicle, the customer can be proactively informed about upcoming service events in the future, including a concrete appointment proposal in its preferred workshop.

Significantly less administrative effort

In the service companies, the digitization makes many processes much more efficient. For an average workshop contract, around 80 minutes of administrative activities are today in up to 15 different systems. With the introduction of Digital After Sales, the future system generation, average only 15 minutes are sought. This achieves a significant reduction by more than 80 percent. The service counselors are thereby relieved of non-value-adding activities and can take much more intensive to advise their customers.

In addition, the rising vehicle inventory continues to boost the after sales business. The worldwide stock of Group vehicles is currently more than 100 million and will increase significantly by around 50 percent by 2030 after current forecasts. The basis of the Group After Sales Business is growing continuously and counteracts the influence of declining maintenance costs for electric cars.

Volkswagen Group wants to expand after Sales business with electric cars-volkswagenPhoto: vw

On the requirements of e-mobility, the original parts center in Kassel introduces itself as a worldwide masterdepot. Volkswagen operates a pilot system for determining the optimal storage conditions for high-voltage batteries. These are basically designed for the entire vehicle life of an electric car, but must, for example, in accidents also be kept as original parts. After completion of the project, the construction of appropriate storage capacities is planned.

In the Masterdepot Kassel, around 2400 employees work. They ensure the parts supply for 86 countries worldwide around the clock. The storage area is more than 1.2 million square meters – so good 170 football fields. An average of 220 trucks, 111 wagons and 68 containers, the Masterdepot.

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