{"id":827793,"date":"2026-07-27T22:21:09","date_gmt":"2026-07-27T22:21:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/827793\/"},"modified":"2026-07-27T22:21:09","modified_gmt":"2026-07-27T22:21:09","slug":"bloodbath-arrives-as-vw-mitsubishi-ldv-dealers-close-doors","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/827793\/","title":{"rendered":"Bloodbath arrives as VW, Mitsubishi, LDV dealers close doors"},"content":{"rendered":"

The \u201cbloodbath\u201d of struggling car businesses predicted by former Mitsubishi Australia boss Shaun Westcott has arrived.<\/p>\n

Established car brands are vanishing from Australian suburbs as dealers swing the axe on underperforming franchises and shift to new brands.<\/p>\n

In a triple blow for country drivers in the northeast of Victoria, an award-winning dealer surrendered its Volkswagen, Mitsubishi and LDV franchises, blaming current Government policy for its decision.<\/p>\n

MORE: Car giants exit Aus<\/a><\/p>\n

In a statement posted to the Wodonga Prestige Volkswagen Facebook page, the owners of a major VW dealership said that \u201cdue to Government legislative changes affecting the motor industry that are beyond our control, the Jacob Group of Companies has made the difficult decision to surrender the Volkswagen franchise\u201d.<\/p>\n

\u201cAfter more than 25 years of proudly serving our community as Australia\u2019s first stand-alone Volkswagen dealership, we would like to sincerely thank our customers, staff and community for your loyalty, trust and support throughout our journey\u201d.<\/p>\n

Australian Automotive Dealer Association chief executive James Voortman said last week<\/a> that \u201cthe combination of China\u2019s rise and the intense competition it brings along with the challenges in complying with new emissions standards is changing the fabric of this industry\u201d.<\/p>\n

\u201cThis year 67 car brands are aggressively competing for market share, and we have been saying for some time that not all of these brands can survive.\u201d<\/p>\n

MORE: Why brand exits are the tip of the iceberg<\/a><\/p>\n

\"Fiat<\/p>\n

The car industry has been rocked by transformation in recent weeks, with European giant Fiat choosing to stop importing and selling new cars, and Peugeot\u2019s local importer surrendering the right to import the brand.<\/p>\n

Federal Chamber of Automotive Industries chief executive Tony Weber agreed that \u201cnew brands will come into the market and brands will exit the market\u201d.<\/p>\n

Victorian Automobile Chamber of Commerce chief executive Peter Jones said dealerships and brands will \u201cevolve over time\u201d<\/p>\n

\u201cDealers need to make money and so they\u2019re swapping out profitable from non-profitable,\u201d he said.<\/p>\n

The Jacob Group, a family business which has operated its Volkswagen dealership in Wodonga for 25 years, and was named the Volkswagen Provincial and Premium Dealer of the year in 2023, announced the closures of its Wodonga Prestige Volkswagen, Mitsubishi Wangaratta and Wangaratta LDV social media channels last week.<\/p>\n

MORE: Aussies ditch big brands for Chinese dupes<\/a><\/p>\n

While there has been no word on the future of the showrooms, there could at least be a hint of what\u2019s to come in a recent business name filing by The Jacob Group which shows the name Wangaratta MG was registered on July 7.<\/p>\n

The brand switcheroo is a change happening across Australia where large car dealer groups appear to be stepping away from brands in decline.<\/p>\n

\"Dodgy<\/p>\n

Essendon Volkswagen, on the outskirts of Melbourne, has recently ditched its VW sales operation in favour of MG. All that remains of VW at the large Essendon Fields multi-franchise car yard is its servicing and parts operation.<\/p>\n

Google Street view cameras show many brands have switched from well established names such as Ford and Nissan to new brands including Chery and Omoda Jaecoo. <\/p>\n

Both Volkswagen and Mitsubishi once had best-selling vehicles in Australia, but sales volumes have declined in recent years, with 2025 Volkswagen sales down 20.6 per cent to 28,970 and Mitsubishi sales down 17.9 per cent to 61,198. <\/p>\n

LDV is a more recent entrant to the market but it too has been hit by market dynamics, its sales peaking at 21,298 in 2023 but currently sitting at just 6409 for this year to date. <\/p>\n

None of the three brands axed in country Victoria have been able to capitalise on the market\u2019s sharp shift to affordable cars and electric vehicles areas which are now dominated by Chinese-made cars and SUVs. <\/p>\n

That\u2019s despite Volkswagen adding a range of EVs in the past two years and Mitsubishi pioneering the electric vehicle transition with its iMiev city car and latterly its Outlander PHEV. LDV has also grown its portfolio with a range of electric delivery vans as well as a people mover, the LDV Mifa 9 but has a portfolio dominated by large diesel commercial vehicles.<\/p>\n

Instead, each of the axed brands has found itself in a position where it has a dual-cab ute as its best-selling car, the very vehicles targeted by the Albanese government\u2019s NVES emission scheme which penalises importers of high emission vehicles like diesel utes.<\/p>\n

As manufacturers and dealers shift their business models and product line ups to address the NVES changes, and Australia car buyers react to rising fuel prices by opting for smaller or alternative fuel vehicles, the Australian car industry is facing its biggest shake-up since the loss of local manufacturing. <\/p>\n

Globally, car makers like Volkswagen are continuing to face serious headwinds, with Volkswagen Group planning radical action to reduce the number of vehicles it manufactures as well as rationalising the range of cars it offers.<\/p>\n

Locally, Mitsubishi has struggled to gain traction with its once-affordable small car, the ASX since it changed to a more expensive European-sourced model, raising prices by over 30 per cent compared to the outgoing model.<\/p>\n

Its latest axing from country Victoria has proven to be an unfortunate confirmation of its former Chief Executive, Shaun Westcott\u2019s comments to this masthead less than two years ago, that a period of excess supply would lead to \u201ca bit of a bloodbath\u201d for the car industry.<\/p>\n

\u2013 with David McCowen<\/p>\n","protected":false},"excerpt":{"rendered":"The \u201cbloodbath\u201d of struggling car businesses predicted by former Mitsubishi Australia boss Shaun Westcott has arrived. 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