Volkswagen Group Japan KK, a wholly owned subsidiary of Volkswagen AG in Germany, is hoping separate showrooms for Audi and Volkswagen will increase each brand's identity in Japan.
The first Audi outlet was set up this month in Tokyo, and the firm plans to complete the separation within three years, according to Peter Nochar, who became the company's executive vice president last month.
Within that time, the group will try to expand its current 250 outlets to 420 -- 300 for Volkswagen and 120 for Audi. The planned reorganization will make it easier for salespeople to sell by allowing them to focus on one brand, Nochar said.
In addition, Volkswagen plans to introduce 21 models to Japan by 2005, and single outlets cannot handle 21 models, Nochar said. "It's a worldwide policy that Audi and Volkswagen will be sold independently," he said.
The German car company currently sells both brands through the sales channels of Duo and Fahren and has already begun negotiating with some of the dealers.