Volvo is doubling down on electric cars. The Swedish automaker, owned by China's Zhejiang Geely Holding Group, has unveiled a bold new program that won't merely change the types of vehicles it sells but will also radically change the way it sells them. Both in its portfolio of vehicles and its method of selling cars, Volvo seeks to emulate and perhaps outdo Tesla Motors.
The plan calls for Volvo to discontinue internal combustion engines (ICE) in its vehicles by 2030. In that year, every Volvo model will have an electric drivetrain. Perhaps equally bold was the revelation that it will sell all of its new electric vehicles (EVs) only online.
As a worldwide initiative, the company announced that it is planning to fundamentally change how it sells to consumers by using a Tesla-style online sales platform with non-negotiable prices. At the same time, said Håkan Samuelson, CEO of Volvo Cars Corporation, Volvo will continue to work closely with its retailer-partners, or dealers, as it positions itself for future success.
In alignment with this new way of selling vehicles, the new 2022 Volvo C40 Recharge will be available exclusively online for purchase, lease, or subscription. Volvo is also modifying its Care by Volvo subscription service, making it a more inclusive vehicle acquisition experience as part of the initiative.
"The future of Volvo Cars is defined by three pillars: electric, online, and growth," Lex Kerssemakers, Volvo head of global commercial operations, said in a statement. "We want to offer our customers peace of mind and a carefree way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do."
To enable easy online vehicle acquisition, Volvo execs said the company would reduce the number of vehicle configurations, packages, and options on its vehicles going forward. Volvo customers will choose from pre-configured EVs ready for simple, convenient ordering and quick delivery.
Under the Care by Volvo customer care program, Volvo EVs will come with a package that includes maintenance and service, warranty coverage, roadside assistance, insurance where available, and home charging options. Rather than optioning-up their cars, Volvo customers can personalize their vehicles using the automaker's dealer-installed accessories catalog.
Though the move to a pure online sales procedure for all Volvo electric vehicles seems to de-emphasize Volvo dealers, the automaker's executives quickly stated that the company is undertaking the new efforts in concert with its retailers.
"While Volvo Cars is investing heavily in online sales platforms, it will build stronger customer relationships together with its retail partners," Volvo said in a release heralding the new initiatives. "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."
At the same time, Volvo execs spoke about broadening their retail approach with not only online sales but also pop-up and boutique stores, many in upscale retail environments.
"Online and off-line need to be fully and seamlessly integrated," Kerssemakers said. "Wherever the customer is in their journey – online, in a showroom, in a Volvo Studio, or driving the car – the customer experience needs to be top-notch."
Volvo's online selling effort for the 2022 C40 Recharge began today. Deliveries in the U.S. market are expected to start early next year.
Volvo Cars is the source of information for this article. It was accurate on March 2, 2021, but it may have changed since that date.
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