Volvo Cars will introduce a direct-to-consumer gross sales mannequin within the United Kingdom by the tip of this 12 months. And the Swedish automaker intends to export the idea to extra markets.
The notion is already inflicting unease amongst Volvo’s American sellers.
Former Dyson exec and Volvo’s newly minted CEO, Jim Rowan, mentioned he believes the standard manner of promoting big-ticket autos via third events is “flawed.”
“It seems strange for me coming from the consumer electronics and technology industry that you can sell a product which is $40, $50, $60,000 of value to a customer that you never speak to pre-sales and you never speak to post-sales,” Rowan mentioned on an earnings name Thursday, referring to the shortage of direct factory-consumer relations.
“That’s a flawed business model, especially in today’s world when we’ve got so much connectivity at our fingertips. We need to be part of that conversation.”
Rowan didn’t reveal the place else Volvo would possibly broaden its controversial retail mannequin. But if the auto trade outsider aspires to carry it to the world’s second-largest market, he may very well be in for a bruising.
Volvo Retail Advisory Board Chairman Ernie Norcross mentioned U.S. franchise legal guidelines, meant to guard the vendor community, will stop a direct client mannequin.
“Mr. Rowan is moving head-on to a fight with the dealer network,” Norcross advised Automotive News. “We do not feel respected or valued as partners with his comments.”
If Volvo makes an attempt to carry its direct gross sales mannequin to this aspect of the Atlantic, it’ll push U.S. retailers right into a “defensive posture,” mentioned Norcross, proprietor of Volvo Cars Memphis in Tennessee.
Rowan mentioned Volvo’s expertise with the controversial retail mannequin within the U.Ok. will decide the way it’s rolled out to different markets.
“We’re going to learn so much,” mentioned Rowan, who took excessive job final 12 months. “It would benefit us to say, ‘OK, let’s see what we learned here, what didn’t work, and how will we change that for the next market?’ ”
Source: www.autonews.com