VW Dealers Leave Dallas Meeting Optimistic; Charismatic Chairman Talks of Revitalization Plan

Washington DC July 19, 2005; The AIADA newsletter reported that most of Volkswagen’s 640 North American-based dealers were on hand in Dallas late last week as part of a one-day annual meeting to discuss company plans to improve quality and generate new profits. During the meeting, which was closed to media and the public, Wolfgang Bernhard, the dynamic new chairman of Volkswagen AG, received a standing ovation from dealers after pledging to improve quality and provide showrooms with more new vehicles, reports The Dallas Morning News.

“Bernhard told the dealers that he has assigned 300 people full time to resolving the quality problems and intends to check daily with the group about its progress. He also said that VW plans to introduce five to 10 new vehicles in the U.S. over the next three or four years and that all will be priced to compete.”

The News reported that dealers who attended the meeting were optimistic following Bernhard’s presentation. "Every dealer walked out of there sky high," said Eddie Lee, general manager and operating partner of Lewisville Volkswagen in Lewisville, Texas. "We walked out wondering what dealerships might be available that we could buy.

This is the most powerful dealer meeting I’ve been to in my 20-year career." Another dealer -- Rusty Wallis, owner of Rusty Wallis Volkswagen in Garland, Texas, admits he was "really impressed." "He’s talking about making this a full-line franchise with another smaller SUV, a van and a convertible," Mr. Wallis said of Bernhard’s talk. "Three or four years from now, it will be a different franchise."

In the last two years, quality issues have been cited as a cause for a 20 percent drop in sales.