German car dealers fight for survival amid electric shift and shrinking profits
The German automotive sector is facing major upheaval as electrification reshapes the industry. Burkhard Weller, president of the VAD (Association of German Car Dealers), has called for urgent changes to support dealerships during this transition. His demands include clearer electric vehicle subsidies and a faster, bureaucracy-free rollout to help businesses adapt.
Speaking on the latest AUTOHAUS Podcast, Weller highlighted the pressures on dealerships as traditional revenue streams decline. The shift to electric vehicles means fewer wear-and-tear repairs, pushing the aftersales sector toward crisis. He warned that many independent dealerships may not survive without significant restructuring.
Weller stressed the need for subsidies to cover young used cars and apply retroactively from January 1. A streamlined process, integrated into sales without extra paperwork, would ease the burden on dealers. He also predicted a sharp drop in independent dealerships, with fewer than 3,000 likely to remain. The VAD’s push for a stronger political voice has already gained traction in Berlin. Weller noted that policymakers respond better when business owners speak directly rather than through intermediaries. Dealers must now reinvent their models—reclaiming services, updating processes, and adjusting pricing to stay competitive. Industry consolidation is accelerating, with fewer locations and more centralised ownership. Weller’s comments reflect broader concerns about profitability as service volumes shrink and revenue models shift.
The VAD is pushing for faster policy action to support dealers through this transition. Without clearer subsidies and operational changes, many businesses risk closure as electrification reduces traditional income. Weller’s warnings underscore the need for immediate adaptation across the sector.
