Volvo Cars to terminate dealer agreements with Bilia
Tue Nov 24 2020
Lucy Harlow (3497 articles)

Volvo Cars to terminate dealer agreements with Bilia

Swedish car dealership chain Bilia has received notice of termination for its dealer agreements with Volvo Cars in Sweden and Norway, it said late on Monday.

The termination, which has a notice period of two years, covers both Bilia’s car sales and services business for Volvo models.

Bilia, a leading Nordic dealership with around 140 facilities mostly in Sweden and Norway, said its turnover for sales of new Volvo cars in Sweden and Norway was about 6.4 billion Swedish crowns ($743 million) in 2019, compared to 29.5 billion in total for the group.

“The Car Business is subject to a global transformation and we are convinced that Bilia will continue to play a central role also in the future,” Bilia CEO Per Avander said in a statement.

Bilia said sales of used cars were not covered by the dealer agreements and hence not affected by the termination.

Volvo is trying to boost online sales, which it says have accelerated during the pandemic, and aims to sell 50% of its global volume online by 2025.

Tags Volvo
Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe

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