AA plc signs major deal with Volkswagen Group UK

AA plc

("AA" or the "Company")

AA plc signs major deal with Volkswagen Group UK Ltd 

· One million Volkswagen Group vehicles covered by the AA with B2B contract win

· Deal includes Volkswagen Passenger Cars, Audi, ŠKODA, SEAT, and Volkswagen Commercial Vehicles brands

· Volkswagen Group products account for around a fifth of new car sales in the UK

· Dedicated technicians carrying latest diagnostic equipment

· Round-the-clock customer care in the UK and Europe

The AA Plc, the UK's largest breakdown service, has signed a major B2B partnership contract to provide roadside assistance for the Volkswagen Group UK, which accounts for around 20 per cent of new car sales in the UK.

The new four-year contract covers around one million new vehicles - for the Volkswagen Passenger Cars, Audi, ŠKODA, SEAT, and Volkswagen Commercial Vehicles brands - for up to 36 months across the UK and Europe.

Service in the UK will be provided by 90 specially-trained technicians in Volkswagen Transporter vans, equipped with state-of-the-art Volkswagen Group diagnostic equipment, parts and tools. They will be supported by the AA's 3,000-strong patrol force, which will also use some Volkswagen Transporter vans under the partnership.

The AA has also invested in dedicated facilities at its Oldbury operational centre in the West Midlands that will handle all customer roadside assistance enquiries. The service includes roadside and home assistance, recovery, onward travel options and European cover.

Chris Jansen, AA chief executive, says: "The Volkswagen Group makes some of the best reviewed and most reliable cars on the road and it's our job to help keep it that way.

"We are delighted to be providing its valued customers with year-round peace of mind at the roadside.

"We have invested heavily in the service to provide state-of-the-art dedicated operational support both in the UK and Europe."

The Volkswagen Group contract win will add to the AA's B2B business which constitutes 13.4% of the AA's total revenue (as at 31 January 2014) and serves approximately nine million customers. Other recent vehicle manufacturer contracts won by the AA include Porsche and Hyundai; and it has also recently retained Bentley, Ford, Honda and Jaguar Land Rover.

Aside from automotive manufacturers, the B2B business covers three other categories. One is an exclusive relationship with Lloyds Banking Group to offer breakdown cover to premium account holders across the bank's brands, including Lloyds, Halifax and Bank of Scotland. The AA also serves fleet, leasing and hire companies, including Alphabet, LeasePlan, Hertz and Enterprise, as well as ones with large fleets of commercial vehicles such as BT. The AA also provides breakdown cover to insurance companies who offer the service in addition to the core insurance offer to customers.