VW will offer improved leasing and financing terms, as well as payment protection for unemployed buyers in its homeland of Germany.
This new sales initiative applies to both new and used cars and will kick off this Friday, running through to July 31, reports Autonews Europe. The goal is to revive demand in Germany and bring an end to consumer uncertainty.
“We want to provide a first strong stimulus so that customers come to dealerships again,” stated VW brand sales boss Juergen Stackmann. “According to market research institute GfK, consumer sentiment has reached an historic low in April. We need instant measures that have a positive effect on the consumer climate.”
Related: VW Extends Payment Assistance For U.S Customers Through June 1
Registrations in Germany for the VW brand dropped 64 percent in April, with the overall market falling 61 percent. Meanwhile, the German car industry has called for a state-backed incentive program to reignite buyers’ appetites and stimulate the economy.
The VW brand decided on a similar strategy for the U.S. as well, through its Community-Driven Promise program, which was put in place at the beginning of April to help customers who cannot make payments on their cars.
“The COVID-19 pandemic has caused significant stress and worry across America, and is putting financial strain on millions of households,” said VW of America CEO, Scott Keogh. “We will continue to look for ways to help our customers, our dealers, our employees and our communities in this time of crisis.”
In Europe, the car industry saw its factories shut down for an average of 29 working days, as per lobby group ACEA. These closures have resulted in the lost production of more than 2.3 million vehicles across all brands, with VW now bracing for more losses in Q2, since sales for the month of April were nearly non-existent.
