VOLKSWAGEN

Volkswagen can do no wrong in the sales arena at the present, with around 20% growth, year-on-year. Dealers are sharing in the success but it is worth noting that margins are low and, on some entry-level models, a fixed fee is paid. Dealers admit the manufacturer exerts a “considerable degree of control” over their business. Despite its recent success, VW has avoided the oversupply problem and both product reputation and residual values remain high. Whether product like Bora and Passat saloon can find a ready market in used remains to be seen. Meanwhile, new Polo is different enough to have the customers queuing at the door again.