Volvo Car UK was named Manufacturer of the Year 2021 at the AM Awards after showing that it was possible to use the buy-in of its dealer partners to switch to online sales and subscription services.
Here, AM cites some of the evidence in the judges’ decision to recognize the premium Swedish automaker’s evolving auto dealership offering.
As Volvo Car UK continues its growth in the premium sector, it is innovating in the automotive retail landscape in partnership with its franchise auto dealership network.
After being owned by Geely for less than a decade, the premium brand became the only mainstream brand alongside Tesla to offer all models with an electrified plug-in powertrain in a range of coveted SUVs, sedans, and station wagons that rival the best in 2019.
Its cars have a powerful combination of desirable design, driver comfort, competitive monthly costs, and excellent environmental and safety requirements.
In addition, as its Care By Volvo subscription package grows and its ambition to be all electric vehicles by 2030, with 100% online sales, it is also developing the way it sells cars to reach a wider audience .
Despite the move to an omnichannel retail offering – cars can be sold at customers’ homes or in the showroom on the same Volvo retail platform – UK CEO Kristian Elvefors continues to recognize the continued importance of the brand’s franchise retailers.
And it is perhaps a result of Volvo’s sales success over the past few years that its concept is apparently being adopted by dealers.
In a year 2020 influenced by COVID, registrations exceeded a market decline of 29.4% with a decrease of 17.4% to 46,408 (2019: 56,208), which achieved a record market share of 2.85%.
That stock growth has continued to 3% year-to-date (YTD) in 2021.
This growth has resulted in profitable traders.
Despite the dealer lockdowns in 2020, franchisees achieved an average return on sales of 1.5%, according to national sales manager Mark Cox.
This year’s growth in registrations, coupled with further product and network developments, also promises profitability for the future.
The introduction of the C40 Recharge in the showrooms gives retailers a second full electric vehicle for sale as the workshops in Volvo’s 95-location network focus on the after-sales needs of other Geely brands Polestar, the London Electric Vehicle Company (LEVC) and Prepare Lynk & Co.
Shortlisted finalists:
Aston Martin
MG engine UK
Kia Motors Germany
Porsche GB
Toyota GB
