Research On The Strategy To Improve The After-sales Profitability Of Faw Volkswagen Dealers

In recent years,the overall growth rate of China’s automobile sales has continued to decline.The automobile market with a large base has become increasingly challenging to maintain rapid growth,and the development ceiling in various fields of automobile sales is looming.The profitability of dealers is facing major challenges,and FAW-Volkswagen,as a leader in the automotive industry,its situation is not optimistic.As of 2020,FAW-Volkswagen has opened 960 dealers on the entire network,of which the proportion of profitable dealers has dropped from 79.1% in 2018 to 43.61% in 2020.Therefore,dealer profitability has become the core issue for FAW-Volkswagen’s sustainable development,and it has risen to the company’s strategic level.In this context,this article analyzes the current status and problems of FAWVolkswagen dealers’ after-sales profitability,starting with a detailed understanding of FAW-Volkswagen’s dealer profiles,profitability status,and problems,combining the macro and micro environments,and using 4P tools to analyze.The verification was carried out among auto manufacturers,dealers,and customers,and the results found that:In terms of policy orientation,the “Ten Ministries and Commissions Joint Guiding Opinions” strictly implements a small car daily maintenance and after-sales technical service information disclosure service system,which has led to a significant decline in the after-sales technical service advantages of FAW-Volkswagen dealers,forcing FAWVolkswagen dealers to improve their service capabilities.In terms of the competition environment,although FAW-Volkswagen has a clear competitive advantage over independent after-sales service platforms such as independent repair shops,e-commerce O2 O,and competing dealers,and can provide customers with one-stop services,it still has many shortcomings,needing to optimize the management of service quality.In terms of internal management,since the main source of profits for dealers before 2016 was auto sales,they did not pay enough attention to after-sales service.They only stayed at the level of completing the assessment requirements from FAWVolkswagen OEM.Dealers are poor in high-quality personnel allocation,traditional business potential tapping,and profit model integration,and the use of digital means and have not formed a refined management model.The era of FAW-Volkswagen’s after-sales profitability win in a breeze is completely over,and there is an urgent need for refined management reform.To this end,FAW-Volkswagen dealers can enhance their service capabilities through carrying out customer life cycle analysis,improving product service processes,providing highquality service follow-up,satisfying customers with more products and services,and enhancing channel management.Following the principle of “customer experience as the center and profit-oriented,” the profitability of FAW-Volkswagen dealers will be enhanced from the four dimensions: “consolidation of the electromechanical business,tapping the potential of the body and paint business,cultivating derivative business,and financial risk control.” Dealer business guarantee will be improved through manufacturer’ basic guarantee,rebate incentives,and dealer guarantees.