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VOLVO Cars has become the latest in a long list of car-makers to have stepped its toes into car retailing with plans by the Chinese-owned company to run its own dealerships in Sweden.

Part of the retailing strategy is to push online sales as a litmus test for its ambition to sell 50 per cent of global volume online within five years.

It said the purchase this month of Upplands Motor, a major Volvo dealership in Stockholm, would be followed by the takeover of retailer Bra Bil.

Bra Bil (literally “good car”) has eight sites in Sweden, workshops, a finance arm and panel repair businesses. It sells 3000 new Volvo, Renault and Dacia vehicles a year and 2600 used cars annually.

Upplands sells and services Volvo, Mercedes-Benz, Renault, Dacia and Smart brands from nine sites through Sweden. The company was owned by the Lindstrom family that first sold Volvos in 1938.

The sale of Upplands excluded the Mercedes-Benz franchise. The two operations will be merged as a single dealership under the Volvo Bil (“Volvo Car”) name.

This merged operation will allow Volvo to test its home market to gain knowledge and develop the future business model for global markets.

It will offer customers online purchase, lease, subscription and service of their cars and initially pilot its technology-led transformation of retail operations in its home market.

It said in a statement that the strategy is to create a seamless online/offline experience, together with its retail partners, globally.

“Volvo Cars believes customers want the same kind of modern, hassle-free retail experience when buying or servicing their car that they enjoy elsewhere,” it said.

“The traditional retail system has served customers well for decades but as the leading automotive brand in Sweden, Volvo now needs to transform to meet future consumer demands head on.

“Volvo customers will soon be able to move with ease between online and offline, allowing them to save time and money by undertaking much of the buying process online, while maintaining the ability to visit a retailer in person as and when necessary.”

EMEA (Europe, Middle East, Africa) regional director Bjorn Annwall said the “physical retailer and the opportunity for consumers to engage with dedicated, enthusiastic and qualified Volvo personnel remains crucial to our future.”

“We are committed to improving customers’ experiences by working closely – together – with our retail partners.”

Volvo Cars head of commercial operations and former boss of Volvo Australia Lex Kerssemakers said the company had to ensure that every interaction adds to the customer’s total Volvo experience.

“This is key to our commercial transformation and why we focus on a seamless interaction between online and offline,” Mr Kerssemakers said.

“Today’s investment is another milestone as we create a modern, personalised customer experience together with our retailers.”

Volvo Car Group Australia director of PR and corporate Greg Bosnich said there were no plans in Australia to follow with any dealer purchases.

“As for online sales, we do understand that there is a consumer who wants to be doing things differently in the future,” he said.

“By following and learning from our pilot experiences in Sweden we look forward to offering the optimum consumer experience.”

The move to online sales dovetails with other key points in Volvo’s future. By 2050, it wants half of its global sales to be fully electric cars and to establish five million direct consumer relationships.

By 2040, it said it will also reduce its carbon footprint to become a climate-neutral company.

By Neil Dowling

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