Volkswagen forecasts positive French network profitability

Sébastien Briard of Volkswagen stated that the French network's profitability will be positive by the end of 2026, despite a global automotive market contraction of approximately 25%. This prediction comes as the company faces broader industry challenges but believes its structured network will help it succeed.

Volkswagen's network structure and performance

According to Briard, Volkswagen benefits from a strong, structured, and capitalized network that has enabled it to maintain profitability during difficult market cycles. Final figures for the year will be confirmed in early November, following the consolidation of results up to September.

Network concentration and territorial coverage

Briard noted that the network has undergone a trend of distributor concentration, with the number of investors reducing from 180 in 2018 to around 90 currently. However, the territorial coverage has remained largely unchanged due to the profitability of partners.

AI deployment and support for distributors

The deployment of artificial intelligence (AI) tools is being handled by the 90 investors, with varying levels of maturity in adopting AI across different types of distribution structures. Volkswagen is supporting investors by sharing best practices and facilitating the automation of time-consuming processes such as invoice analysis, cost tracking, margin sheets, and commission management for sales teams.

Focus on customer service and efficiency

The company aims to free up time for on-the-ground teams to focus on customer service. Briard emphasized that customer behavior is rapidly changing, with clients increasingly researching vehicles digitally and arriving at showrooms well-informed. This shift necessitates a focus on identifying customer needs during the discovery phase.

Rise of electric vehicles and training programs

The rise of electric vehicles (EVs) has also influenced customer expectations, with 40 to 50% of orders now involving fully electric models. Sales teams are being trained to provide reassurance through targeted test drives and education on EV charging protocols.

Used vehicle sales and regional best practices

Volkswagen has implemented specific training programs for used vehicle sales teams on electric vehicles, including real-world testing of all electric models, including competitors'. Best practices observed in Scandinavian countries, such as Norway and Sweden, where EV penetration reaches 95 to 97%, are being considered for adoption in France.

New electric models and efficiency goals

Looking ahead, Volkswagen plans to introduce new electric models such as the ID. Polo, ID. Cross, and Epiq, as well as the all-electric ID. Tiguan, unveiled at the 2026 Paris Motor Show. In a challenging economic environment, Volkswagen remains committed to maintaining customer experience quality while working on efficiency programs to reduce the "cost of franchise" and alleviate the operational and mental burden on distributors.

Operational focus and customer time

The internal mantra is to eliminate anything that does not contribute to the "flight of the plane," focusing on removing non-value-added administrative tasks from dealerships to give more time to customers.