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Volvo Dealership Rationalisation


Volvo have annouced plans to streamline the Uk dealership netwrok.

This is being done in an attempt to increase sales from the average of 300 per dealership to an estimated 450. This will in turn increase dealer profitablity, and the good news is that it is not going to happen over night. Vovlo anticipate it will instead be pushed by a gradual consilidation of the dealerships 

According to the recent research customers now visit dealerships less and less and are happy to travel further for exceptional levels of service then a shorter distance for somthing  inferior. 

A Volvo spokesperson also said " Some dealerships are not willing or able to make the investment we want. 
We will also have some groups were there are three good ones and it might be better to have two excellent ones. There might be some where it makes more sense for them to be an authorised repairer."

But over all it it onwards and upwards for Volvo the the recent launch of the V40.

Volvo are expecting big things from the V40 in fact the last time Volvo had a C segment hatch was back in 1997 in the form of the 440. ( at the time Volvo dealerships  where selling over 80,000 vehicles per year compared with just 36,000 today ) 

Bear in mind that the C segement provides an estimated 320,000 - 400,000 sales per year and to crack this market could have a massive impact on Volvo's Uk dealer network. Something that Volvo is keen to redress.

It is estimated that 40 % of Europe's large car drivers are activly looking to downsize cars so the V40 which is marketed as a real contented to the Volkswagen Golf, Ford focus and Vauxhall Astra could be exactly what the Volvo dealerships need to claim thier chunk of the C segement.

As always why not let us know your thoughts on the streamling and what you think of the Volvo V40?