December 5, 2021

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Volvo Cars and trucks to terminate vendor agreements with Bilia

FILE Photograph: The wheel hub of a Volvo XC60 car or truck is seen throughout the 87th International Motor Demonstrate at Palexpo in Geneva, Switzerland March 8, 2017. REUTERS/Arnd Wiegmann

STOCKHOLM (Reuters) – Swedish auto dealership chain Bilia has obtained observe of termination for its dealer agreements with Volvo Autos in Sweden and Norway, it mentioned late on Monday.

The termination, which has a discover period of time of two a long time, handles both of those Bilia’s vehicle income and companies company for Volvo models.

Bilia, a primary Nordic dealership with close to 140 facilities mostly in Sweden and Norway, reported its turnover for gross sales of new Volvo vehicles in Sweden and Norway was about 6.4 billion Swedish crowns ($743 million) in 2019, compared to 29.5 billion in complete for the team.

“The Automobile Company is matter to a worldwide transformation and we are convinced that Bilia will continue on to enjoy a central role also in the foreseeable future,” Bilia CEO For each Avander reported in a assertion.

Bilia claimed profits of made use of cars ended up not included by the dealer agreements and hence not affected by the termination.

Volvo is attempting to improve online profits, which it says have accelerated all through the pandemic, and aims to provide 50{2489fae51f1701c1e69cd0bb23bab669ab1913cd9b9f72f6eaed0f0197ebad58} of its world wide volume on the web by 2025.

In September, Volvo announced it was acquiring Upplands Motor, an additional big Swedish dealership, and that it planned a total takeover of retailer Bra Bil, seeking to merge the two organizations with its possess dealership Volvo Bil.

Volvo is planning to use the merged enterprises in Sweden as a pilot for shaping its future vehicle product sales and reinforce its direct make contact with with customers as they move ever more on the web.

Reporting by Johannes Hellstrom modifying by Niklas Pollard