AA wins multi-million-pound contract to service VW cars
The AA today secured a two-year extension to its contract with Volkswagen in a deal worth tens of millions of pounds.
The breakdown cover provider will continue to cover all new vehicles in the Volkswagen group, which includes Audi, Seat and Skoda, the company said today.
The two companies have worked together since 2014, and the extension means the contract will run until the end of 2020.
The deal is one of the AA’s three largest contracts and is understood to bring in tens of millions of pounds in revenues. A spokesperson for the AA declined to comment on the value of the contract.
AA chief executive Simon Breakwell said: “Forming, extending and enhancing closer B2B partnerships with major motor manufacturers, such as the Volkswagen Group, by putting service innovation and data at the heart of what we do, is key to our strategy.”
Business contracts make up the vast majority of the AA’s customers, and the company holds roughly 65 per cent of the manufacturer sector.
The contract extension is a major boost in a difficult year for the UK’s largest roadside recovery company. The company reported a 65 per cent drop in profit before tax to £28m for the six months to the end of July.
In its annual report the AA unveiled plans to focus on technology, saying additional use of data would help it price more competitively.
Shares in the AA were up more than four per cent today, but remain down over 54 per cent since the start of the year.