'The future is electric, and Audi Volkswagen Korea is prepared'
Audi Volkswagen Korea Group Managing Director Rene Koneberg speaks during an interview with The Korea Times in Seoul, Friday. Courtesy of Audi Volkswagen Korea
Audi Volkswagen Korea chief pledges strong return with new EVs
By Nam Hyun-woo
Over the past few years, the presence of Audi and Volkswagen vehicles in the Korean automobile market have been kept at a low level after their importer, Audi Volkswagen Korea (AVK), was slapped with a sales ban in 2016 following a global emissions scandal involving Volkswagen Group.
To control the situation, the German automaker sent a relief pitcher, appointing Rene Koneberg as AVK group managing director in 2017. Under his leadership, the company centered its efforts on recovery and managed to showcase a noticeable rebound this year, selling 37,824 vehicles as of November. The company said it expects the number will grow to 42,000 by the end of this year, which is more than a two-fold increase compared to last year's sales volume.
During an interview with The Korea Times, Koneberg said the period helped AVK to build its market again here for future growth, and the company's recovery will pick up momentum in the coming years, with electric vehicles (EVs) spearheading the comeback.
“Looking for the last two years for AVK, it was quite tough and struggling,” Koneberg said during the interview on the sidelines of AVK's annual media day held on Friday. “But on a positive note, we used the time to set up our structure to revamp and set the footing for future growth… It is a unique chance to build up a market again.”
During the media day, Koneberg revealed the company's short-term business plan. In the next year alone, the four brands ― comprising Audi, Volkswagen, Bentley and Lamborghini ― will roll out more than 20 new cars or facelift models, as well as carrying out 100 certification projects. Furthermore, he said the brands will launch eight EVs in the next three years, including the Volkswagen ID.4 and the Audi e-tron Sportback 55.
“When you look at the EV market, vehicles in A-, B- and C-segments account for 65 percent of the total at the moment,” Koneberg said. “When you look at our portfolio for the future, we will directly come with the products in those segments. That means we will bring the right product for the customers here in Korea. … The future is electric, and we are prepared.”
He said the combined sales of eight EV models will reach 11 percent of AVK's total sales in 2023. From a long-term view, he anticipated EV share in AVK's total sales will show a growth trajectory in line with the Korean government's plan of having EV or fuel-cell vehicles account for 30 percent of total vehicle sales by 2030.
The Volkswagen ID.4 / Courtesy of Audi Volkswagen Korea
For this, Koneberg said bringing in new EVs into the country is not everything. Citing its own study, he said 50 percent of EV owners are charging at home in Korea, whereas the number in other countries was hovering over 70 percent, due largely to the housing culture here.
“This means public infrastructure and charging stations are very important for Korea,” he said. “Most chargers in Korea are AC chargers and our future products will be compatible with super rapid chargers. This network needs to be developed and we and our dealerships together invested to set up super rapid chargers in 34 dealer outlets across the country and this will continue.”
According to him, AVK is planning to turn all of its Audi, Volkswagen and other dealerships here into super rapid charging stations, and develop a booking system with its Korean charger supplier, Daeyoung Chaevi. Already, AVK has spent 7.7 billion won to set up super rapid charging stations at 20 Audi showrooms and 21 service centers here, and the amount is expected to grow.
Along with the investment into EV-related infrastructure, Koneberg stressed investment in people will help the company to pursue a fast recovery. After Koneberg took the helm of AVK, the number of employees increased by 10 percent even though the company's sales plunged. Also, the company restructured its organizations and set up a new department, called Digitalization and Customer-Centric Experience, in order to enhance customer experience in connectivity services.
Along with internal investment, AVK spent 268 billion won for domestic dealerships to help them withstand the low sale period in the past three years.
“People are the core of the business,” he said. “Over the past three years, we supported them 268 billion won based on the low sales. That is understandable for our side, but that also shows how close the relationship is between our dealers and AVK.”
In terms of the firm's corporate social responsibility program, AVK is also focusing on fostering talent in young people. The company has earmarked 5 billion won for its TOMOROAD program for the next two years, which focuses on creating the educational, environmental, and cultural infrastructure to help young people in Korea. As part of the education program, the company provides lectures on automobiles, coding, city development and other future mobility technologies to middle school students in Korea.
The Audi e-tron Sportback 55 / Courtesy of Audi Volkswagen Korea