Report: Volvo Dealers Respond Negatively to Digital Retail Strategy

Last week, we discussed Volvo Cars’ plan to transition to an online sales model as a larger quotient of its product becomes electrically driven. As luck would have it, the concept hasn’t been a runaway success with auto retailers. Vehicles becoming increasingly digitized, combined with the unparalleled consumer access offered by the internet, has made numerous manufacturers wonder why the dealership role couldn’t be diminished. After all, Tesla has done alright without a traditional sales network.

But Tesla didn’t have a gross of existing showrooms ready to make a fuss. Volvo has nearly 300 and dealerships are reportedly voicing their concerns as the manufacturer does what it can to assuage fears about the possibility of their being put out of businesses in the coming years.

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More Volume Or Head Upmarket? Hyundai Chooses Both.

When CEO Chung Mong-Koo told his employees to make Hyundai’s quality world class, their competitors all had a collective laugh. Well, we all know how that ended, so when Chung told his employee to increase sales, the competition should probably heed his words as a warning. The Korea Times reports that Chung Mong-Koo wants the Hyundai-Kia group to increase sales by 17% in 2010, from 4.63 million (2009) to 5.4 million. “Our teamwork helped turn a crisis into an opportunity when the global auto industry was at its darkest,” said Chung Mong-Koo. “Based on our achievements last year, let’s work together to make 2010 a year of writing a new history.” Analysts like Sohn Myung-woo of Woori Investment & Securities sees the goal as achievable, saying “Hyundai will continue its sales momentum in the U.S. and emerging markets such as China and India.” But besides expanding volume, Hyundai wants to use its momentum to continually improve its brand image in mature markets like the US. To that end, it’s paying more attention to how it markets its Genesis luxury semi-sub-brand.

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  • HotRod It took longer than it should have, but I respect VW for openly acknowledging the system's numerous flaws. Hearing that they intend to bring back physical controls for commonly used features, and that they wish to standardize them across their lineup was the biggest surprise in VW's announcement. It's just so sensible. Rather than using completely different configurations of physical buttons, capacitive controls and touchscreens for every single model, Hyundai/Kia/Genesis would be wise to consider a similar strategy.
  • Zerofoo Ugh - a MKIV VW. Heavy, slow and terrible interior durability to boot. The 1.8t in these things had awful lag, and was made worse by owners swapping K03 for K04 turbos.No Thanks.
  • Oberkanone I'm into it. An occasional trip on the WABAC machine is of interest to me.Thinking of Nissan I have to suspect being an underachiever is their goal. Not since the SE-R has the Sentra been class leading. "Most likely to be a rental" is as appropriate in Nissans yearbook in 2022 as it was 2012.
  • EBFlex Quality though? Was never on the table at Ford.
  • Oberkanone Prefer Trail Duster on rarity basis. Here is a nice one. 1979 Plymouth Trail Duster Sport 4x4 for sale on BaT Auctions - closed on May 14, 2020 (Lot #31,407) | Bring a Trailer