2:32 pm, May 19, 2023
The UK will become the first market to move 100 per cent to agency sales with Volvo when it makes the switch next month.
The Swedish car brand announced today that it will be closing the wholesale channel for the UK in June and at that point it will move to direct sales.
In the announcement, it explained that car dealers will still remain an important part of the sales process.
It said: ‘It is important to note that we are not closing the Volvo Cars retailers. They continue to be an important part of a seamless online and physical consumer experience.’
Kristian Elvefors, Volvo Car UK managing director, said: ‘Evolving consumer needs are the driving force behind this change. We want to provide the best possible experience for our consumers, whatever their buying preferences.
‘The transformation is being undertaken in close collaboration with our retailer partners and we are confident it will deliver an industry-leading buying process.
‘It’s exciting to see the progress we’ve already made as we transition our business and continue the roll out of this new sales model.’
Volvo pointed out that it has already set up several direct sales channels in the UK, and to date more than 12,000 new cars have been sold this way.
Since 2019 it has been possible to buy a car online from Volvo in the UK, in 2020 it launched its Care by Volvo subscription service and in 2022 introduced its direct sales channel for approved used cars.
Later in 2022, it also added a solution for Fleet and Business buyers to manage their company cars directly.
Elvefors added: ‘So far this year, 17 per cent of our sales have been online and direct, and they continue to grow as we move towards the completion of this transformation.’
Although the Volvo Cars website will become the central point, with national prices, it adds that the consumer relationships with its retailers will play an increasingly important role.
Sister-brand Polestar already operates exclusively as an agency model, which it refers to as a ‘service provider agreement’ as boss Jonathan Goodman explained at Car Dealer Live.
Chris Carr, managing director and owner of Volvo Cars Shrewsbury, was among the first to sign the new partner agreement. He said: ‘We are really looking forward to continuing our strong relationship with Volvo Car UK as we undergo this huge transformation.
Volvo has shown willingness to listen to retailers throughout this journey and demonstrated openness. This collaboration leaves us, as retailers, in a really positive place to drive our businesses forward, while securing a fundamental role in the future of Volvo’s first direct sales market.
It added that Sweden will follow the UK as Volvo’s next market to switch to exclusively agency sales.
