Chinese-owned Volvo Cars said today it will transform the current wholesale model by moving online as it aims to be a fully electric car company by 2030. Volvo currently only sells one pure EV, but expects government regulations will increase demand. Volvo will launch a completely new family of electric cars in the coming years – all of which will be available online only. As part of its new strategy, Volvo Cars says it will invest heavily in its online sales channels, radically reduce complexity in its product offerings, and provide “transparent and set pricing models.” Combined with the move to online sales, Volvo Cars will offer EVs under the “Care by Volvo” name. (Geely moves Closer to Owning AB Volvo. Chinese Company Owns the Car Brand and Is Buying Into the Truck Business, A Decade of Chinese Ownership – Volvo Cars Posts Strongest Second-Half Sales in Its 93-Year History)
The strategy is focused on what appears to be the fastest-growing segment in the global car industry: the premium electric market. Volvo Cars aspires to be a leader or at least a survivor in this segment competing with Tesla, Audi, Cadillac, BMW and Mercedes, among others. Volvo will focus on developing electric cars only going forward. It does however face potential legal problems from current authorized dealers or dealership groups.
“The future of Volvo Cars is defined by three pillars: electric, online and growth,” says Lex Kerssemakers, Head of Global Commercial Operations at Volvo Cars. “We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do.”
Care by Volvo, until recently known as the name for Volvo Cars’ subscription service, will be expanded aimed at increasing overall convenience. When buying an electric Volvo online, it will come with a convenient care package that includes items such as servicing, warranty, roadside assistance, as well as insurance where available and home charging options.(Individual market variations will occur)
The online store, volvocars.com, will “radically simplify the process for, and reduce the number of steps involved in, signing up for an electric Volvo. Customers will be able to choose from attractive pre-configured electric Volvos that are ready for simple and convenient ordering and quick delivery.”
Volvo, for what it’s worth, also claims it will build “stronger customer relationships together with its retail partners. They remain a crucial part of the customer experience and will continue to be responsible for a variety of important services such as selling, preparing, delivering and servicing cars.”