Toyohashi City, Japan – Volkswagen Group Japan (VGJ) has announced it will end a contract with Toyota Motor Corporation, which previously distributed Volkswagen cars in Japan, and sell all vehicles through its dealers itself.

The two companies mutually agreed to terminate the contract at the end of 2010. Volkswagen dealers currently under Toyota distributorship will move to a new direct dealer contract with VGJ.

The decision was initiated by Volkswagen AG, which has been reviewing its global sales structures since the economic crisis in the fall of 2008. Volkswagen will move to direct contracts with the dealers, without a distributor.

VGJ currently has 250 dealerships in Japan, making it the largest import network in the country, with 134 of them operating under the Toyota distribution contract. Of the 45,522 Volkswagens sold in Japan in 2008, 21,774 were sold by dealers under the Toyota contract. Volkswagen has been Japan’s number-one import brand for nine consecutive years.

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