VW needs money. Urgently. Savings have not been enough so far, and now the Wolfsburg company wants to tighten the screws on the revenue side even more: German media cite a dealer circular announcing price increases.
Almost all models with combustion engines are affected, as “kfz-betrieb” and “Automobilwoche” report. The trade magazines have a circular that VW sent to its German dealers. Accordingly, there will also be some equipment options.
The highest surcharge of just under 2,500 euros will apply to the recently updated Touareg off-road vehicle, while the lowest increase of around 500 euros will apply to the small Taigo and T-Cross crossovers. The bestsellers Golf and Tiguan will each become around 1,100 euros more expensive – at around 4 percent each, the increase will be relatively largest there.
Of the non-electric cars, only the small Polo is not affected by the price increase. The electric cars of the ID family are not mentioned in the letter. VW sells these via a so-called ‘fake agency model’, in which the dealers have no direct influence on the prices.
Regular price increases are not unusual, but the size and level of the current round of inflation are. Furthermore, ‘kfz-betrieb’ reports that there was no cross-model price increase at Volkswagen in the spring. The measure could therefore be a response to the group’s current problems.
Volkswagen has been trying to increase its profit margin, which is slim compared to the sector, for some time now with a comprehensive cost-cutting program. The Wolfsburg-based company recently announced that it would no longer rule out operational layoffs and factory closures in Germany. VW itself does not give any reason for the price increase in the dealer letter.
Whether and to what extent prices will also be increased in Austria is not yet known. A request is pending.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
