It’s pretty normal on subscription, but to have it on cash sales is new. That’s why we’ve introduced the care package we offer on subscription for cash sales. We have a new car and an online system now, so it’s a new era.” Whether it was the online aspect, the subscription process or a combination of the two that made them come to us, they hadn’t seriously considered Volvo before. With Care by Volvo online, 90% of customers we hadn’t seen before. “ is a new car and probably some new customers. Why start selling online with just your EV range? “We thought ‘now we’re entering a new era of electric cars, let’s build on what we’ve done with Care by Volvo and start with online only’.” “During Covid-19, that has only increased, and not only in the automotive environment: just look at all those delivery vans going down your street. In Germany, 10% of our sales are already online. We have some experience now of online sales with Care by Volvo, including in the UK. “The world is ready for it: consumers are asking for this change. Why is Volvo making the shift to online sales now? Subs exclusive: Subscriptions enter crunch phase as finances bite.Subs exclusive: ACEA lobby group under pressure as Volvo leaves.Volvo XC40 Recharge 2022 UK first drive.Volvo XC40 Recharge 2023 long-term test.The carmaker will aim to bundle connected services such as insurance, servicing and home charging. Samuelsson said it would not reduce dealer profits, but that standardised bundles of optional extras would cut the costs of offering extensive lists of trim and technology choices. It could also reduce under-pressure dealerships’ independence and ability to negotiate. Volvo’s move to online sales is part of a broader move by carmakers to build direct relationships with customers. Many legacy automotive companies have forged closer links with other brands within larger groups or even between competitors in order to spread the costs of electric vehicle development. Volvo and Geely Autos last week scrapped plans to merge their operations, but said they would share more electric vehicle technology and software. Geely, one of the few large Chinese carmakers not controlled by the state, has sought to expand in recent years. Volvo is owned by Geely, a Chinese conglomerate run by billionaire Li Shufu that also owns British sportscar brand Lotus and British electric taxi and van manufacturer LEVC. The company recorded its best-ever profits in the second half of 2020 as the Chinese market rebounded from the fall in sales at the start of the coronavirus pandemic. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.” “We are firmly committed to becoming an electric-only carmaker and the transition should happen by 2030. “There is no long-term future for cars with an internal combustion engine,” said Henrik Green, the Volvo chief technology officer. That allowed it to sell emissions credits to Ford for an undisclosed sum, helping the US carmaker avoid steep fines. Its electrified portfolio meant that Volvo easily achieved EU-mandated emissions targets in 2020. Volvo also sells several plug-in hybrid electric vehicles. However, its higher-margin premium cars allowed it to be among the more advanced European legacy carmakers in the transition away from fossil fuels, including the launch of its Polestar all-electric brand to rival US electric car pioneer Tesla. Volvo last year launched its first fully electric car, the XC40 Recharge, and it will unveil a new electric 40 Series on Tuesday. However, a customer in 2025 will probably still pay more compared with an equivalent hybrid version, Samuelsson said. In the longer term, the cost of manufacturing electric cars would be lower, he said, achieved through reducing the number of complex systems in the car and cutting the number of separate computers needed. Samuelsson added that he expected the cost of manufacturing an electric car to drop to the same level as internal combustion engine cars by 2025. Jaguar’s move had “encouraged us to be a bit braver”, Samuelsson said. Rivals that have in 2021 unveiled formal plans to abandon fossil fuels include the Jaguar brand (by 2025) and luxury carmaker Bentley (by 2030). We are fully focused on becoming a leader in the fast-growing premium electric segment.” “So instead of investing in a shrinking business, we choose to invest in the future – electric and online. “To remain successful, we need profitable growth,” he said. He expected the carmaker’s sales to continue to grow as it moved to electric technology. Håkan Samuelsson, the Volvo chief executive, said the company did not want to be stuck targeting a shrinking market for petrol and diesel cars.
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