Mid-2023 go-ahead for Volvo agency move

  28 November 2022

Volvo has agreed terms with its retail network to move to an agency model from mid-2023, according to Auto Retail Agenda sources.

While contracts still have to be signed by each retailer, it is understood the dealer network reached terms of the shift from franchised to agency agreements at an investor conference with the Swedish brand in the past week.

A spokesman for Volvo would not comment on the timing of the agreement, but confirmed a more direct approach to sales was the future direction for the brand: “Volvo Car UK is working with the retailer network on transforming to become a direct consumer-facing operation with strong digital solutions. Full details of the changes will be communicated at a later date.”

He added the upcoming EX90 large SUV would only be available as an online order as a direct sale with “retailer assistance”.

Volvo will follow Mercedes-Benz in its move to agency in January with many more manufacturers expected to follow suit in the next few years.

Last week Stellantis said it was delaying its agency plans for the DS, Alfa Romeo and commercial vehicle brands by six months to January 2024 while it piloted the model in Austria, The Netherlands, Belgium and Luxemburg, while it made sure it had the correct logistics in place to support the changeover.

For those retailers looking to learn more about the switchover to agency, Auto Retail Network is running a conference dedicated to the subject which aims to empower retailers with the knowledge they need to make the transition go as smoothly as possible.

More information and tickets are available here.

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