Volvo UK confirms switch to agency sales model from June

Volvo UK has confirmed it volition power to the ‘agency’ income exemplary – successful which it volition merchantability cars straight to buyers astatine fixed prices, alternatively than wholesale to dealers – from June.

As antecedently reported by Autocar, the UK is the archetypal marketplace successful which the marque volition run the income model. Sweden is the adjacent marketplace earmarked for the switch, with different European countries following later.

The determination volition not effect successful the closure of the Volvo Cars retailers, the marque said successful a statement.

Volvo UK managing manager Kristian Elvefors said: “Evolving user needs are the driving unit down this change.

“We privation to supply the champion imaginable acquisition for our consumers, immoderate their buying preferences.

“The translation is being undertaken successful adjacent collaboration with our retailer partners and we are assured it volition present an industry-leading buying process.”

Volvo CEO Jim Rowan called the accepted car income exemplary “flawed” successful February, expressing his astonishment that “a $40,000-$60,000 product” could beryllium sold without its shaper ever engaging with the customer. “For me, that’s a flawed concern model,” said Rowan.

He added that the power to bureau is astir making definite Volvo is “still portion of that conversation” with the lawsuit successful the long-term.

Mercedes-Benz became the archetypal shaper to determination to the bureau model at the commencement of this year. The determination has helped to increase the mean merchantability price of its cars, said Mercedes. The German firm’s main fiscal officer, Harald Wilhelm, said: “Every determination successful [every] marketplace truthful acold to the nonstop income exemplary has had a supportive constituent successful presumption of the nett pricing.”

The exemplary has been criticised by immoderate customers for removing haggling and forcing prices up, and by immoderate dealers for removing their expertise and grooming from the income process. Some manufacturers not readying to marque the modulation – including Hyundai, Kia and Renault – person besides raised that past contented arsenic reasons for not rushing into a change.

Renault’s UK boss, Guillaume Sicard, told Autocar successful January helium remains committed to a accepted trader exemplary but helium refused to regularisation retired the anticipation of a power to agency: “I emotion dealers. I emotion and respect the occupation they bash successful the market, however they pass with customers and however they negociate relationships with manufacturers. I deliberation we request to respect that.

“But I besides person to stay open-minded. That doesn’t mean we should ne'er bash it. The situation of talking to customers straight is tremendous and we are not capable to bash that today. Maybe we volition beryllium 1 day, truthful possibly successful a fewer years we volition reconsider."

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Additional reporting by Jim Holder