Porsche Holding Salzburg Plans To Further Develop Its Distribution Activities In France

2017-03-06
  • Volkswagen Group Retail France (VGRF) to be founded 
  • Volkswagen's own dealerships in France to be integrated into Porsche Holding Salzburg
  • PGA Group SAS to be sold along with its multi-brand retail dealerships

Salzburg, March 6, 2017 - Porsche Holding Salzburg plans its next important step in optimizing its retail dealer network: Presumably as from July 2017, Volkswagen's own dealerships in France are to be integrated into the newly founded company Volkswagen Group Retail France (VGRF), a Porsche Holding Salzburg (PHS) subsidiary. Along with this development and subject to authorization by the Competition Authority and the information and consultation process of the representative organs of the employees, PHS wants to sell PGA Group SAS including all corresponding dealerships distributing non-Volkswagen Group brands. 

"Porsche Holding Salzburg is to undertake a strategic development of its distribution activities in France. PGA Motors Group, which also distributes brands from other manufacturers than Volkswagen, is to be sold. We wish to merge the 19 dealerships currently belonging to Volkswagen Group France and the 44 PGA Motors dealerships representing Volkswagen Group brands into Volkswagen Group Retail France (VGRF)", explains Alain Favey, Porsche Holding Salzburg CEO. 

PHS would then have responsibility for all dealerships of the Volkswagen retail networks in Austria, Germany (VGRD), Spain (VGRS), Southeast Europe, Italy, Sweden and France (VGRF) distributing Volkswagen passenger cars and commercial vehicles, Audi, Seat, Škoda, as well as for a number of Porsche and Bentley dealerships. 

"Since 2012, dealerships belonging to Volkswagen's own retail network in Europe have gradually been integrated into Porsche Holding Salzburg. By completely focusing in Europe on the Volkswagen Group brands, we improve our productivity and retain our customers more efficiently", explains Alain Favey. 

Volkswagen Group Retail France (VGRF) is expected to reach 1,900 employees and plans to sell roughly 30,000 new vehicles per year. VGRF should so become a major player within the Volkswagen retail network in France.

The 193 PGA Motors dealer locations in France selling brands other than from Volkswagen Group as well as all PGA dealerships in Belgium (6), Poland (12) and the Netherlands (50) are to be sold to Emil Frey Group. Also in the future, PGA Motors is to represent the Volkswagen Group brands in France at 14 dealer locations.

The above-mentioned transactions will be carried out subject to finalisation of the information and consultation process of the representative organs of the employees.

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