Volkswagen Group to sell cars direct from Q4 2026

The future sales model for Volkswagen Group Ireland was announced to its dealers on Monday and a press release was issued earlier this afternoon.

AutoTrade.ie has spoken with a number of main dealers that have Volkswagen Group Ireland franchises to get their reactions.

Is appears that from October 2026, all six Volkswagen Group Ireland (VGIE) brands – Audi, Cupra, Seat, Skoda, Volkswagen Commercial Vehicles and Volkswagen Passenger Cars will exclusively sell new vehicles direct to customers from 2026. The general consensus among the dealers we spoke with, was that they were unclear about what their role in new VGIE car sales would be.

VGIE claims that this future sales model is designed to meet evolving customer needs. It adds that it will enable seamless online, physical and blended purchasing experiences. Other distributors do not agree with are opting to maintain the dealer model.

The market leaders Toyota, and five others (Hyundai, Kia, Nissan, Peugeot and Ford) in the top 10 are staying with the existing new car dealer sales model. See the full provisional list below as we see it at this time. BMW and Mini (BMW Ireland) are now joined by the VGIE marques in planning to switch to direct new car sales.

When the United Kingdom left the EU, the Republic of Ireland became more isolated economically and physically for access. A number of distributions I have spoken with pointed to this, and that manufacturers were not imposing models on them for this and other reasons such as taxation etc. One told me: “If it is not broken, why would you be fixing it”.

The Volkswagen car brand currently has 29 sales outlets in the Republic of Ireland, Volkswagen Commercials has 21, Skoda has 27, Seat 22, Cupra 16, while Audi has 11. Several of these dealers would be franchisees for more than one of the group’s brands, other may have just one VGIE franchise.

The Auto Trade Journal is aware that VGIE is meeting with individual dealers this week at which many will be informed that they will be loosing one, more than one or all of the franchises they currently hold. They will be given 28 months notice, which would mean their contracts would expire at the end of September 2026. Those dealer’s service and parts franchise contracts will not be effected, provided the guideline standards are maintained by them.

Some very successful dealerships may loose their VGIE franchises in order to offer larger retail territories to neighbouring dealers. However, following this restructuring of its network, VGIE claims its future retailers will continue to play key role under new sales model. The press release does not detail this role.

VGIE says that the combination of what it calls a “state-of-the-art digital customer journey and a highly competent retail network will enhance consumer satisfaction and deliver a best-in-class retail experience”.

The press release further stated that: “the change in the business model will enable the entire purchase process to be digitalised, allowing customers to choose between physical purchases in a car showroom, digital purchases online and a blend of the two”.

It goes on: “When implemented, customers will be able to opt for a fully digital, online buying experience. Those who prefer a hands-on approach can still visit their local showroom or choose a blend of online and physical purchasing journeys. Ultimately, the customer decides which approach suits them”.

The fact that it states that the new process will allow customers to “choose between physical purchases in a car showroom, digital purchases online and a blend of the two” reads like a choice of the existing dealer model, a direct sales option and a third hybrid version, combining both. We asked VGIE to confirm if this is the case and if so, in option two, is the physical purchase in the car showroom, the dealer selling the customer the new car?

This is what its spokesperson replied: “Absolutely. Buyers will still be able to physically purchase cars from a showroom. In addition to this, they will be able to purchase cars online.

“Alternatively, they can switch between the two throughout the car buying journey . For example, they can research their next car online, do a test drive at their nearest showroom and then decide which approach is most convenient for them.”

Adding: “In our Future Sales model, Volkswagen Group Ireland are selling new vehicles direct to customers irrespective of where the customer purchases. Our future retailers will remain at the heart of the car buying process.”

The dealers we spoke with were unclear about how this can work and how they are compensated for their service and role in a sales process where they are acting as a handling agent.

One dealer posed the question of what motivation of the sales persons at dealerships will replace their existing commission model? Another pointed out that all marketing cost and all other costs would have to be taken on by the distributor.

VGIE claims that its ‘Future Sales’ model offers a host of advantages. By digitalising the purchasing process, customers get maximum convenience while maintaining access to Volkswagen Group’s nationwide network of retailers. It adds that the new sales model allows the Volkswagen Group to establish a direct interface with its customers, ensuring all their needs are met. And it says that ultimately, the goal is to enhance customer satisfaction and deliver the best retail experience in the industry.

That certainly remains to be seen. A look at the list below, clearly indicates that any distributor of cars in the Republic of Ireland (including manufacturer owned distributorships) that had a choice in this major decision, have opted to stay with the franchise model. Indeed, some that had opted to go direct have changed their positions and are remaining with the dealer model. This makes it a brave move by VGIE and also BMW Ireland.

Alicia O’Connor, director of sales transformation and customer experience at VGIE, said: “In every aspect of life, customers want faster, more convenient and transparent transactions. Irish customers are comfortable buying online. However, many still want the tactile experience of going to a showroom, getting into a vehicle and taking it for a test drive. With the Future Sales model they have the best of both worlds.”

In my experience, I am personally not comfortable buying online and I would argue that those with the disposable income for the private purchase of new cars in Ireland are primarily over 50 years old and the level of comfort among those generations to make the second largest purchase after a house online, very much remains to be seen.

While finance packages and the growth in PCPs etc., has broadened the numbers of younger generations (those in their 30s and 40s) buying new cars, this has been largely driven by it being explained and sold within dealerships.

The compensation and motivation of the dealers and salespeople in the process would appear to be vital to the future success level in this regard.

“Learn from the mistakes of others, you can’t live long enough to make them all yourself” is a great and true saying. Examples of the difficulties and realities of changing new car sales models are being experienced in the UK, our nearest neighbour market. Watch this space.