I predict that the National Auto Dealers Assoc tries to sue Volvo out of existence.
Yes, Volvo has joined the growing number of manufactures planning to go fully electric by the 2030s. What sets it apart, though, is that the manufacturer plans to sell its “completely new family of electric cars” entirely online.
Hoping to buy that brand-new, all-electric Volvo from the local dealership come 2030? No dice.
The press release doesn’t confirm this, but we wouldn't be surprised if Volvo follows a model similar to Tesla's, where the dealerships act as storefronts in which employees guide customers through an online buying process.
At any rate, Volvo’s brick-and-motor dealerships don’t seem to be disappearing any time soon, as the company's head of global commercial operations, Lex Kerssemakers, explains: “Online and off-line need to be fully and seamlessly integrated. Wherever the customer is in their journey—online, in a showroom, in a Volvo Studio, or driving the car—the customer experience needs to be top-notch.”
As part of its new sales strategy, Volvo will “invest heavily in its online sales channels, radically reduce complexity in its product offer, and with transparent and set pricing models.” The carmaker notes that all future models bought this way will come packaged with “items such as service, warranty, roadside assistance as well as insurance where available and home charging options.”
What do you think of this particular selling strategy? If you really wanted a particular car but the only way to buy it was through the manufacture’s website, would you still buy it? Or would you go to a different carmaker who still uses a dealership network?
Read the full press release below:
Volvo Cars is fundamentally changing how and where to meet its customers, and will transform the current wholesale model by moving online and with strong customer relationships.
It aims to be a fully electric car company globally by 2030 and will launch a completely new family of electric cars in coming years – all of which will be available online only.
As part of its new commercial strategy, Volvo Cars will invest heavily in its online sales channels, radically reduce complexity in its product offer, and with transparent and set pricing models.
Combined with online sales, Volvo Cars will focus on a complete convenient customer offering, all under the Care by Volvo name.
"The future of Volvo Cars is defined by three pillars: electric, online and growth,” says Lex Kerssemakers, head of global commercial operations. “We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do.”
The strategy is focused on the fastest-growing segment in the global car industry: the premium electric market. Volvo Cars is committed to becoming a leader in this segment and will focus on developing electric cars only going forward.
While Volvo Cars is investing heavily in online sales platforms, it will build stronger customer relationships together with its retail partners. They remain a crucial part of the customer experience and will continue to be responsible for a variety of important services such as selling, preparing, delivering and servicing cars.
“Online and off-line need to be fully and seamlessly integrated,” added Lex Kerssemakers. “Wherever the customer is in their journey – online, in a showroom, in a Volvo Studio, or driving the car – the customer experience needs to be top-notch.”
Care by Volvo, until recently known as the name for Volvo Cars’ subscription service, will be expanded into a broader customer offer aimed at increasing overall convenience.
When buying an electric Volvo online, it will come with a convenient care package that includes items such as service, warranty, roadside assistance, as well as insurance where available and home charging options.
On its flagship online store, volvocars.com, the company will radically simplify the process for, and reduce the number of steps involved in, signing up for an electric Volvo.
Customers will be able to choose from attractive pre-configured electric Volvos that are ready for simple and convenient ordering and quick delivery.
Further convenience and simplification comes through transparent and set pricing models. This eliminates the need for negotiations, increases transparency and builds trust.
Like what you're reading? We rely on your financial support. For as little as $3, you can support Grassroots Motorsports by becoming a Patron today.
I predict that the National Auto Dealers Assoc tries to sue Volvo out of existence.
Yes.
John Welsh said:I predict that the National Auto Dealers Assoc tries to sue Volvo out of existence.
I bet you $1 they will not be successful.
Let's meet here again in 2031.
Sounds pretty great actually. Select what I want, wait for it to show up at some location in my general area or it gets delivered to where I live, and I pay a price that probably isn't different from what it was advertised at? No dingbat saying how he has to talk to his manager for 20 minutes before he can come back and lie to me some more?
Sign me up.
The dealership model is a dysfunctional, broken piece of E36 M3.
Why ANY manufacturer would allow a potential customer to be treated that way completely blows me away.
There's real opportunity in pulling the rug out from under the dealers.
Unfortunately there probably won't be the same deals available if you know how to take advantage of, or are willing to put up with the dealer nonsense to get what you want.
As long as I could test drive one somewhere sure.
No. But I don't buy new cars so...
The last three cars I bought were sight-unseen from halfway across the country, and those were used. I *did* test drive an auto version of my Clubman to see how I liked it and to see if my 29er would fit in the back (it did! haha), but the other two were more like educated guesses. All three have worked out well.
If I was in the market for a new Volvo, I'd assume that all I would learn on a test drive is that it is as numb as it could possibly be, so yea, I'd buy one without the world's most boring test drive.
I'm glad to see that the general consensus is that this is a pretty good idea. I know some of us don't normally buy new cars, but the fact that many of us have bought used cars of various conditions mostly online is proof enough for me that this sales model can work.
Besides, I never really understood why the current dealership method of selling cars is the "preferred" method of selling cars.
I would think for a car company without a current extensive brick and mortar dealer network, online/digital sales model would have advantages to reach more potential customers. But for me, I would still need to see, feel, drive, taste... the car I was buying through some means. However, my sons and their generation seem more comfortable and willing to buy big ticket items without the same level of interaction before purchasing. I would not miss the current dealer based purchase process.
Displaying 1-10 of 68 commentsView all comments on the GRM forums
You'll need to log in to post.
