The German firm Volkswagen takes a further step in its business strategy with the first two new generation electric models. Now on sale, the brand from Wolfsburg has been fully involved in subscription programs, initially in Germany. The new system, called “Volkswagen AutoAbo” is now available.
More and more brands are betting on subscription programs. Although there are many clients who opt for private property when buying a car, they are also many who do not want to be permanently tied to the same model, liking to try others and also saving some important costs that the property supposes.
The Wolfsburgs are expanding their business model with new sales channels, in addition to dealerships and online sales, contemplated within the new Volkswagen strategy known as the “ACCELERATE” plan. A new vision that has just been implemented in Germany, premiering the «Volkswagen AutoAbo» program which, in principle, will only be dedicated to the new electric models on offer.
AutoAbo is the new subscription program for electric Volkswagen
Sources of the German brand have explained that “Volkswagen AutoAbo” is one of the largest subscription programs in Germany, as it has a fleet of no less than 2,000 units – used units with few kilometers that the brand calls “young used” – available to customers, combining the advantages of leasing and car sharing.
“AutoAbo” is offered in two modalities, with a minimum subscription of three months and another of six months, in which contract includes maintenance, checks, tires, «Discover Pro» navigator, insurance and road taxes, in addition to tests of fitness for circulation, since the brand requires a minimum age of 19 years to access the service and one year of driving license. The program also includes a monthly mileage of 800 kilometers. All that is an expense for customers, with lWith the logical exception of the electricity that is needed to recharge the battery that the clients cover.
The subscription program can be cancel monthly, but once the minimum period has been exceeded and the vehicle can be used by two people. A business model in which the brand has paid special attention, estimating that, by 2030, subscriptions will account for 20% of revenue. In Germany, the monthly price of a three-month subscription – “AutoAbo” – for ID.3 and ID.4 amounts to 589 and 739 Euros, respectively, while the six-month subscription – “AutoAbo Plus” – is reduced to 499 and 649 Euros.