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.
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.