Volkswagen CEO Touts Dealership Advantage in ‘Race with Tesla’



Volkswagen’s ID.3 was neck and neck in sales with the Tesla Model 3 in a number of European countries. And now, the company’s head has pitted itself against the all-electric vehicle (EV) company in a new bid to become the world’s most important EV maker.

On Monday, Volkswagen CEO Herbert Diess said that the company would be moving away from gas vehicles in order to turn the focus to EVs, as reported by Yahoo Finance. To do so, company factories in Emden and Hanover, Germany, will be completely redone to focus on EVs, as a part of an $86 billion (USD) investment plan which is set to bring EVs to the front of Volkswagen’s line.

In a call Monday, Diess told investors “We have to be seen as a tech company.” He continued, “Yes, it is going to be a race with Tesla. They are also ramping up fast. We have more different body styles, and when it comes to an established dealership network, we should have an advantage over Tesla.”

The Volkswagen ID.4 sold out almost immediately earlier this year, after its order configurator hit the VW website. The company’s website actually crashed on the configurator’s release day, signaling a ton of web traffic on the site, before the vehicle sold out completely.

But let’s be honest, the dealership model is old school. Tesla’s online ordering without haggling and paying exactly the same as everyone else is the clear advantage.

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