VW Finds Another Way To Copy Tesla

A fresh sales method is needed for the carmaker's new line of EVs.

Like Tesla, Volkswagen sees electric vehicles as the future of private mass transportation. Internal combustion is on its way out and hybrid and plug-in hybrid systems are really only stop-gap measures. The German automaker's first-ever EV from the ground-up, the ID.3 hatchback, is scheduled to go on sale in Europe this summer. In North America, the Volkswagen ID.4 crossover will be sold instead and its own debut is expected shortly. And now it appears VW is once again taking a page from the Tesla playbook.

The company has just announced its entire ID family, starting with the ID.3, will not be sold in the traditional dealership format. Instead, a new business model is being enacted where dealers will serve only as delivery agents.

Customers will place their orders online or offline and provide their preferred dealer for personal care and other local services. It's at this point where the dealer assumes the role of an agent. They will handle everything from monitoring the acquisition, sales consultation, and organizing test drives to processing the transaction and ensuring the delivery goes off without a hitch.

Basically, VW decides the vehicle's final price, not the dealership, thus avoiding the annoying back-and-forth haggling between customer and sales rep. The dealer's commission is also fixed, even if the customer makes the purchase online. This also provides the dealership some relief in knowing that no matter whether the customer buys the car in-person or online, their compensation is already set.

Tesla has already proven the non-traditional dealership method for selling electric vehicles works very well. There are no Tesla dealerships, but rather stores which are often located inside shopping malls. People can browse around, ask all the questions they want to a trained Tesla sales representative, and even place an order. Of course, the latter can be done online as well. Because VW already has an established dealership network, it wouldn't make sense to establish stores only for EV sales. This new agency model still utilizes those dealers and, at the same time, offers customers a unique and more personal buying experience.

For now, the new buying process applies to Germany only. Chances are VW will observe how everything goes and, if successful, could introduce the agency model to other markets, including the US.