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Dealer Network Management Update 15 July 2013

Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

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Page 1: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Dealer Network Management Update 15 July 2013

Page 2: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Content

Dealer Network Management

• DNM Road Show

• Modular Concept - Completed Sites

• Modular Concept Sites in Progress

• The New MasterCars CI

• Catch up with our DPAP Delegates

• Dealer Principal Induction Tour

Business Management Update

• Business Management Consultation Tool Box 2013

• VW Dealer Profitability March 2013

• Summary of Performance

Exciting Golf GTI Launch News

Page 3: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

The Dealer Network Management Road Show

POSITIVE FEEDBACK RECEIVED:

„Regional analysis superb“

„Regional financial numbers very interesting“

„Great value added by the key-note speaker“

„Loved it, even better than last year, keep up

the great work“

„Informative & added value“

Overall attendance:

Durban, Cape Town and Bloemfontein

demonstrated incredible support, but the

overall attendance was great.

Durban – 19 March – The Hilton Hotel

94% attendance

Port Elizabeth – 20 March – The Boardwalk

Convention Center

71% attendance

Cape Town – 26 March – The Vineyard

95% attendance

Johannesburg – 3 April – The Forum

76% attendance

Bloemfontein – 4 April – Protea Hotel Willow Lake

95% attendance

We recently embarked on a road show where we engaged our Volkswagen Dealer

Principals and Financial Managers. Key strategic objectives for the department were

presented and welcomed positively by our dealers.

Page 4: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Page 4

The Modular Concept Recently Completed Sites

Page 5: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

The Modular Concept

18 projects have been completed to date with a total investment of

R 261 million. Once again we would like to commend the dealers who have

made the investments.

There are a number of projects that are currently in progress and that are

planned for 2013. We will continue to keep you updated on the developments

going forward.

If you are planning to do the upgrade soon please refer to the On-Site Modular

Concept Building Project Disruption Pay-out Support that was recently issued.

One of our strategic goals is Benchmark Facilities for the Volkswagen brand

experience to our customers and the modular concept fulfils this brand promise.

Page 6: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

NTT Heidelberg

In our previous edition NTT Heidelberg was just breaking ground…

We are proud to announce that NTT Heidelberg launched their magnificent new

premises in March of this year and are now in full swing!!

Page 7: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

McCarthy Middelburg

McCarthy Middelburg followed suit. They are situated in the heart of the city

and they truly exude the Volkswagen brand.

Hentie and his team were happy to move into their “new” dealership in

February 2013 after almost 10 months of upgrade. This is a perfect example

showing that any building can be converted into the new Modular Concept at a

reasonable investment.

Page 8: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

NTT East London

Probably the best located dealer in town. Situated alongside main arterials

and facing the highway, NTT East London emanates great architectural

work. This resembles the true essence of the Volkswagen brand.

Page 9: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Barons Pietermaritzburg

A fine example of an Option 2 Modular Concept building.

Barons Pietermaritzburg completed their upgrade in December 2012 and

have been trading briskly since then.

Page 10: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Dealer Perspective The New Modular Concept

I would like to thank VWSA for choosing us as one of the

pilot dealers for this upgrade.

It is surely a world class upgrade and we feel very proud to

be one of the first to experience this design of a dealership.

Our customers for the first time feel as if they are walking

into a VW dealership. Some came in just to have a look and

left with a brand new vehicle. It has definitely helped our

sales as the figures show for themselves. New records have

been written as well.

Mascor VW Vryheid is going to be a dealership that VWSA

are going to be very proud of one day.

Our immediate goal at Mascor is to become dealer of the

year and thanks to the help of the new building it has made

it a lot easier for us to achieve this goal.

From all of us at Mascor VW Vryheid a very BIG thanks to

VWSA for this opportunity.

Stephen Van Rooyen

DP – Mascor Vryheid

Page 11: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

The Modular Concept

Page 12: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Barons Bruma

The upgrade has not stopped Barons Bruma from doing business, they are

currently operating from containers. We are positive that the sacrifice will be

worth it when they finally move into their completely renovated facility!

Page 13: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Barons Bellville

Started their upgrade earlier this year and are well into their project. This

upgrade will transform Barons Bellville into a world class Modular Concept

dealership.

Watch this space…

Page 14: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Dirk Ellis Humansdorp (Jeffrey’s Bay)

Dirk Ellis and Mike McNaughton identified a greenfields site in Jeffrey’s Bay. In

January 2012 the site was approved by Volkswagen as a new home for Dirk Ellis

Humansdorp. Construction commenced in January and the progress has been

remarkable. They are looking forward to relocating around September/October

2013.

Page 15: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Midbay Motors Richards Bay

The construction work is underway in the new car showroom.

This is a phased project – it started with the completion of the MasterCars showroom in

October 2012; followed by the new workshop. Estimated completion is the 3rd quarter

2013.

Page 16: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Hatfield Pretoria

Hatfield Pretoria is nearing completion, with most of the work already completed.

This was also a phased project that started with the completion in the commercial

showroom, then MasterCars and then the new car showroom. The final phase of

upgrading the service area is currently in progress.

Page 17: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Hatfield Pretoria

Nic and his team recently moved into the new car showroom. They absolutely liked

the atmosphere and have settled into the new premises.

Page 18: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

The New MasterCars CI

Page 19: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

MasterCars New CI

We recently launched the new MasterCars CI, below is a recap of the

requirements and the update on the "MasterCars“, a Volkswagen brand. For that

reason, its visual identity is based on the Volkswagen Corporate Design. For

customers it generates orientation and confidence, ensuring a uniform visual

experience.

Every time customers come into contact with our brand they encounter a

consistent image and immediately recognise: This is the MasterCars logo.

1. Primary Signage Roll Out

• MasterCars Name Sign is mandatory for all dealers.

• Romano will replace all faces on the recently completed sites.

• Romano will then commence with the roll out to the rest of the dealer network.

• The entire roll out will be completed by the end of June 2013.

Please note that changes to directional and departmental signage will be

required when primary signage is fitted.

Page 20: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

MasterCars New CI

3. Branding Items

• Brand Plates, Silent Salesman, Posters, Flags & Price Visor Boards

• National MasterCars Manager to communicate details shortly

2. Secondary Signage

Available at the dealers account:

Page 21: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Catching Up with Our

Dealer Principal Apprentice Programme Delegates This is what they have to say 20 months later…

The Programme has taught us the focus areas and "tick boxes"

paramount when managing a dealership, however, PEOPLE are

the trigger. Therefore, my moment of truth came three months

later when I realized that I was losing control. I very quickly

shifted gear and turned 80 % of my daily focus to PEOPLE (staff,

customers, superiors, manufacturer relationships, suppliers, coach,

colleagues etc.)

What I take away from the Programme so far, "the importance of

balance in the dealership", as Paddy 'O Brian (Sewell's)

quoted. Once you have the right people, my role is to ensure that

all departments fire from all cylinders. A DP must not shy away

from any department, keep your finger on the pulse on ALL -

that's the foundation.

Once a candidate has attended the Programme, in my opinion,

the likelihood of failure once appointed to the position of the DP is

unforeseeable.

The past 18 months has been an absolute roller coaster ride in

terms of learning, building, dedication, networking and

achievement.

For me personally, the Sewells part of the programme has

given me excellent exposure into the running and financial

aspect of a dealership; exposure into the operations of the

other departments of which my knowledge was limited. It has

allowed me to become more confident in my abilities, as well

as in my approach to handling problems/issues and people.

What I am most proud of is the bond that I have formed with

the other delegates who have been my rock (support structure),

my conscience and my mirror – where I am able to bounce

ideas off and know that the advice I am getting is the truth!

And finally, the exposure and support from VWSA has really

transformed my life and my career. Everyone has been

extremely helpful and taken a keen interest in our success and

this has kept me motivated to being the best that I can possibly

be.”

Marcia Mayaba, DP – VW

Lindsay Saker Alberton

Smita Odhav – Sales Manager

Lindsay Saker Hyde Park

Page 22: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Catching Up with Our

Dealer Principal Apprentice Programme Delegates This is what they have to say 20 months later…

The DPAP programme has helped a great deal, I'm

now well groomed and have developed an ability to

identify opportunities in my career. With the

confidence and knowledge I received through the

program, I managed to set up a new dealership from

scratch.

Our dealership has been successful from the time it

opened in November 2012 and the programme has

played a role in that success.

I have earned respect in the industry and my business

model is being used to set up similar businesses within

our franchise.

Through the programme, I can look at the business

holistically, developing the ability to forecast and set

long term goals. Moreover, I now have the confidence

to mentor others.

This programme has truly been a "life changing experience" and I can’t

believe how fast the past 18 months have just flown by. Successfully

completing the Sewells ADM programme has benefited me in looking at

the business from a more holistic point of view. I now have a proper

understanding as to how important as well as to what role each

department plays within the dealer and I'm now well equipped to pick up

on out-of-line areas, recommending possible solutions in all

departments. The submission of our business plan was probably the most

daunting time of my life, knowing that if you did not pass this part of the

Sewells ADM program you were not deemed competent, on the flip side,

winning the award for "the most outstanding business plan" was worth all

the time, effort and stress that I had to endure.

Looking back at the past 18 months, I now realize how important the

personal coaching sessions have been. My coach taught me how to

manage the expectations of others as well as my own; how to manage my

time and achieve a healthy family and work life balance...thanks Andrea.

Finally, the network that I've been able to build from the folks at VWSA;

the different facilitators and lecturers I met and most importantly my fellow

colleagues has simply been “priceless”. This network will help me for years

to come, knowing that vital advice is merely a phone call away.

Xolani Mkhwanazi - General Manager

McCarthy Gezina

Ashley Gengiah - New Vehicle Sales Manager

Audi Vereeniging

Page 23: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Catching Up with Our

Dealer Principal Apprentice Programme Delegates This is what they have to say 20 months later…

My take on the DPAP programme thus far:

The past 18 months have been the most informative, enriching and exciting months of my career.

The programme has been a mix of constructive learning, networking, gaining complete understanding of a

dealership as a whole, and most importantly, putting all of these into practice on a daily basis. Parts and

Accessories has been my focus since joining Volkswagen, but being on this programme has brought to life the

constant chain between the various departments, and how they work together to make a dealership prosper.

Being part of a team (which has become more of a DPAP family), with all their knowledge, experience and

constant support and motivation, has made this journey a whole lot more fulfilling.

The Sewells component has been amazing, and has really opened my mind to a whole new way of thinking and

looking at a business model. Along with that there has been the one-on-one coaching sessions, which have

definitely proven to be valuable, giving me all the support needed to get so far, and complete the Advanced

Dealer Management Programme, and will no doubt continue to support my growth along this great journey.

This is definitely a once in a lifetime opportunity, and I'm proud to be a part of it!

Bilal Bhoja - Lindsay Saker Edenvale

We congratulate our delegates on milestones achieved thus far and the

relationships they have formed, this is evidence that teamwork does prevail. The

commitment, enthusiasm and passion they have shown on the programme is

phenomenal and we commend them for that.

Volkswagen wishes them the best of luck as they are nearing the finish line!

Page 24: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

The Dealer Principal Induction

Annually, the DNM team hosts new Dealer Principals to an induction at the

Uitenhage Plant. This year; the tour is scheduled for the 18- 19th of July 2013.

Customarily, the trip begins with a welcome dinner on the arrival night. The

following day, a business session is then conducted whereby different

departments orientate the new Dealer Principals to various processes within the

Volkswagen business. The day closes off with the plant and paint shop tour.

This year we've also extended the invitation to our DPAP delegates as part of

their programme development and they are very excited to be part of the

induction.

We look forward to the trip!

Page 25: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Business Management

Page 26: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Dealer Profitability & Risk Management

Business Management Consultation Tool Box 2013

Dealer Profitability &

Risk Management

LEAP & LEAP Lite

Small Dealer

Incubator

Used PIP*

Best Practice Dealer

Forums*

After-Sales PIP’s

Business Planning

Tool

Dealer Specific

Consultation

Page 27: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

VW Dealer Profitability – May 2013

Page 28: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

VW Dealer Profitability May 2013 YTD

Page 29: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Dealer Profitability – Summary of Performance

• Full year 2012 result for VW Brand was a record 2.84%!

• Q1 2013 result of 2.30% due to:

• Fewer trading days impacting on After-Sales

• Financial year-end impact for certain dealers, etc.

• Improved April and May 2013 results supported by an increase in the number of

trading days and incentive pay-outs.

• Business Management team currently focused on Bottom 20, with continued LEAP,

Service PIPs and Planning Tool roll-outs scheduled for the rest of 2013.

Page 30: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Golf GTI Launch News

Page 31: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Golf GTI Launch News

Almost four decades ago, a car was launched that forever changed the

motoring world. And seven generations later, the New Golf GTI is primed yet

again to continue this proud legacy, enhancing the mythology of this iconic

brand to take the motoring world by storm.

Page 32: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Golf GTI Launch News

The New Golf GTI is an unadulterated acceleration from its predecessor.

Superior engine performance

providing 162kW and 350Nm

torque, precision engineering,

world class build quality,

outstanding safety credentials, all

working in synergy with enhanced

driver assistance systems allows

the New Golf GTI to deliver an

unequalled driving experience

with superlative handling and

incomparable driveability that will

reignite your passion for the thrill

of the drive.

Page 33: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Golf GTI Launch News

Signature GTI traits in the honeycomb grille with red pinstripes and the

interior red stitching paying homage to its origins, but the New Golf GTI is

undeniably the class leader in quality, technology, safety, innovation, and

most importantly driving dynamics.

Page 34: Dealer Network Management Update...The Dealer Network Management Road Show POSITIVE FEEDBACK RECEIVED: „Regional analysis superb“ „Regional financial numbers very interesting“

Thank you for your patronage.

Till the next mailer!