Volkswagen Underestimated 'Digital Car Purchasing Trends' and Launches Second-Hand Car Platform, Heycar
HeyCar, the used car platform majority-owned by Volkswagen Financial Services (VWFS), is shutting down.
In a recent statement, VWFS revealed that HeyCar will cease operations in Germany by May and in the UK in the upcoming months. The decision to pull the plug comes after industry publication "Automobilwoche" reported on HeyCar's closure, citing a spokesperson from VW Group's financial services arm. The spokesperson noted, "The shareholders have decided not to continue funding HeyCar."
Launched in 2017, HeyCar was designed as an alternative to the dominant platforms, Mobile.de and Autoscout24, for car manufacturers. Boasting brand-agnostic roots, it had Renault and Mercedes among its shareholders.
Despite high hopes, HeyCar failed to meet expectations. Speaking to the newspaper, the VWFS spokesperson attributed the shutdown to overestimating the development of digital purchasing behavior, underestimating marketing costs, and a lack of expected trade commitment.
While specific reasons for HeyCar's underperformance were not detailed, it's apparent that the automotive market and the parent company's broader strategic reassessments played a role. Volkswagen has recently refocused on electrification and battery production, as seen in MAN's shift to EV battery manufacturing in Nuremberg and Scania's acquisition of Northvolt's industrial battery business.
With Volkswagen Group accelerating its EV infrastructure investments, the timing of HeyCar's closure suggests potential resource consolidation. instance, HeyCar's failure to achieve significant market penetration, increased competition from established platforms, and regulatory pressures could be contributing factors. Profitability challenges in digital marketplaces may also have played a role in the decision to shut down the platform.
- Volkswagen Financial Services (VWFS), the majority owner of the used car platform HeyCar, has chosen not to continue funding the brand-agnostic platform, following unmet expectations and strategic reassessments.
- HeyCar, a used car platform launched in 2017 as an alternative to dominant players Mobile.de and Autoscout24, will cease operations in Germany by May and in the UK in the upcoming months.
- Originally designed for car manufacturers, HeyCar attracted shareholders like Renault and Mercedes, but its failure to penetrate the market can be partly attributed to overestimating the development of digital purchasing behavior, underestimating marketing costs, and a lack of expected trade commitment.
- With Volkswagen Group refocusing on electrification and battery production, the closure of HeyCar might indicate a consolidation of resources to emphasize investment in EV infrastructure, as seen in MAN's shift to EV battery manufacturing and Scania's acquisition of industrial battery business.
