Volvo’s commitment to becoming a maker of only electric cars by 2030 isn’t the sole way in which the Swedish firm is changing: it has also vowed to reinvent the way it sells cars.
The only way to buy an electric Volvo, such as the new XC40 Recharge P8 and the forthcoming C40 Recharge, will be online. The company has already launched its no-commitment Care by Volvo subscription scheme and is now introducing fixed pricing for cash buyers. Every car will be sold with a ‘care package’ that includes items such as servicing costs and warranty.
It’s a fundamental shift in how the car industry operates and one that raises several questions, over everything from value for money to the future role of dealerships. Autocar recently spoke to Volvo’s commercial boss, Lex Kerssemakers, about the move.
Why is Volvo making the shift to online sales now?
“The world is ready for it: consumers are asking for this change. We have some experience now of online sales with Care by Volvo, including in the UK. In Germany, 10% of our sales are already online.
“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. Everyone is ordering online.
“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’.”
Why start selling online with just your EV range?
“[The XC40 EV] is a new car and probably [will attract] some new customers. With Care by Volvo online, 90% of customers we hadn’t seen before. 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. We have a new car and an online system now, so it’s a new era.”
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In Oz, this one-size-fits-all online pricing won't fly for novated-lease user-choosers. The expectation of substantial no-hassle "fleet discounts" on initial purchase prices is very much part of the scheme, and individual brands which opt out will find their share of that market drops off a cliff in Australia.
Mr. Lex Kerssemakers believes that all customers prefer online sales. He may be nicknamed Mr. Cursemakers by conservative old style customers.
Analysis: Why Volvo EVs are online only
Because electricity flows on line