Volkswagen hits back over web sabotage claims

NEWS German car giant, Volkswagen (VW), has attacked media coverage of its alleged attempts to sabotage car selling over the web. The company ran into controversy this week over a letter it sent out to all VW and Audi dealers threatening complete withdrawal of franchise if they dared to sell its cars over the web. The ensuing coverage implied that VW is concerned that selling cars over the net could lead to discounting and lower revenues. But the firm has hit back, releasing a statement which insists it does not disapprove of either the net or discounting. VW claimed it uses the net to inform customers looking to buy or service a car, and said there is no reason to believe that customers get a lower price dealing over the net than directly with a retailer. But the firm's letter to dealers specifically warned them not to approach online car sellers such as Autobytel UK, which sells cars of all makes at discounted prices. Autobytel CEO, Kevin Turbull said VW's reaction was disappointing. "They've backed themselves into an awkward position and essentially they're disappointing their customers," he claimed. In its statement, VW claimed Autobytel is an agent which takes a fee that would otherwise be passed onto the customer. But Turnbull said Autobytel is not a broker. "There is a fee, but we pass on more savings to the customer because all the selling is done on the website. So there are no fleets of expensive sales people to pay," he said. Silicon.com will publish an interview with Kevin Turnbull next week.