Volkswagen Philippines has confirmed that it will end the distribution of Volkswagen vehicles in the country by September 30, 2025. The announcement, released by Automobile Central Enterprise, Inc. (ACEI), the brand’s official distributor, marks the conclusion of its partnership with Volkswagen AG after several years of operation.

According to the company’s statement, the decision follows an agreement between ACEI and Volkswagen AG to terminate their distribution arrangement in the Philippines. Volkswagen Bonifacio Global City (BGC), the brand’s flagship sales facility, will remain open only until the end of September 2025. While sales operations are winding down, the company emphasized its commitment to customers through continued service and maintenance support.

Volkswagen vehicle owners in the Philippines will still be able to access authorized after-sales services. ACEI stated that it has established a comprehensive support network to ensure customers can maintain their vehicles to factory standards even after the sales arm ceases operations.

The Alabang Service Center, located at Acacia Avenue in Madrigal Business Park, Muntinlupa, will serve as the primary after-sales hub for Metro Manila and nearby provinces. For customers in Cebu, servicing arrangements will be coordinated by the Alabang facility but performed at A. Soriano Avenue in Cebu City. Another authorized service center in Pampanga, located along MacArthur Highway in Dolores, San Fernando, will continue to cater to owners in Central Luzon.

To simplify access to maintenance and repairs, the company is maintaining a digital booking platform for its Alabang and Cebu service appointments at https://idiph.odoo.com/appointment/15.

Customers can also email [email protected] for scheduling or inquiries. In Metro Manila, owners may take advantage of a pickup and delivery service by contacting +63 966 379 7673 or +63 917 501 7677.

Those who prefer to have their vehicles serviced in Pampanga can call +63 918 854 2379 or email [email protected]. For general customer relations inquiries, Volkswagen Philippines will continue to respond through [email protected] or the same Metro Manila hotline numbers.

Despite the impending closure of its distribution operations, ACEI expressed its gratitude to Volkswagen owners and enthusiasts across the Philippines. The statement thanked customers for their “continued trust and loyalty over the years” and assured them that the company would continue prioritizing their after-sales experience.

Volkswagen entered the Philippine market under ACEI in 2013, bringing a range of models including the Santana, Lavida, Tiguan, and T-Cross. While sales figures have declined in recent years due to intense competition and the emergence of new entrants, the brand has maintained a loyal customer base, particularly among buyers seeking German engineering at more accessible price points.

Volkswagen first established a presence in the Philippines in 1958, under DMG Inc. (Diesel Motors of Germany), founded by Domingo M. Guevara Sr. DMG was the exclusive assembler and distributor of Volkswagen vehicles locally, assembling models such as the Beetle, Kombi (Transporter), Brasilia, and Passat variants.

Under DMG, several uniquely Filipino derivatives were produced. One was the Sakbayan, a locally adapted utility/jeep-style vehicle based on VW components. Another example is the Trakbayan, a commercial derivative. Additionally, the “Toro” was a coupe body using the Beetle’s mechanical underpinnings.

DMG’s operations prospered, especially in the 1960s and 1970s, with a broad service and dealer network across Luzon, Visayas, and Mindanao. However, by the early 1980s, a combination of factors including unfavorable exchange rates, competition from more affordable Japanese cars, and economic conditions led DMG to cease its Volkswagen operations around 1981.

After DMG stepped back, Volkswagen’s presence in the Philippines was relatively dormant until the mid-1990s. In 1996, Volkswagen re-entered the market through a partnership with Proton Pilipinas Corporation, which, under the government’s automotive liberalization and industrial joint venture schemes, produced vehicles locally. Among the vehicles relaunched were the Volkswagen Polo Classic and the Caravelle, which were assembled in Alaminos, Pangasinan.

This 1990s revival, however, had limited longevity. Sales of Volkswagen during that period declined towards the end of the decade due to changing consumer preferences, cost pressures, and intense competition. Eventually, VW’s operations under that configuration wound down before the brand’s more stable return under ACEI/Ayala in 2013.

With the conclusion of its distribution role, ACEI now shifts its focus to ensuring Volkswagen vehicles already on Philippine roads receive uninterrupted care. This move underscores a broader industry trend in which automotive brands facing restructuring or changing priorities seek to preserve after-sales support as a key customer touchpoint.