news.com VW's net engine idles
news.com
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Analysts said the effort pushes GM ahead of Ford, and far beyond VW, which is cracking down on its dealers use of the Web as a sales channel in the UK. A separate division of the German corporation than in the United States, VW UK went so far this week as to ban their dealers from selling online through company's such as Autobytel UK, warning in a sharply worded letter that those who did so could risk losing their livelihood.
"These businesses may well offer retailers a tempting source of additional business," the letter stated. "But you should be quite clear that if you deal with them on such a basis you are in serious breach of your dealer agreement and risk the loss of your franchise."
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Autobytel UK's chief executive Kevin Turnbull said the company is now working with many auto dealers in the UK, but has met particular resistance from VW, Europe's biggest car maker. Autobytel collects 1,000 pounds per month from dealers who list on the site.
"[VW] is the only manufacturer who seems to not accept the fact that consumers want e-commerce and they want to use the Internet," Turnbull said. "They're trying to stick a finger in the dike and say 'No, this is not going to happen."
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VW in the UK is taking a chance by not allowing dealers to use services like Autobytel, as many consumers now want to buy that way, said J.D. Power's Denove. "If they can't buy a VW that way, they may choose to buy another car, for that reason and that reason alone," he said.
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