If you ask a group of people who wants change, they all raise their hands. But if you ask the same group “Who would like to change something?” Nobody answers. Change is not an easy thing and not always pleasant. – Thomas Bauch CEO Volvo Car Germany
Care by Volvo had to face many challenges to be considered competitive – many found the service redundant. The subscription service is an addition to Volvo’s sales model. Last year, Volvo finally managed to combine both lines of business.
The traditional business model with its dealerships and Care by Volvo is two different ways with the same goal, says Bauch:
It’s a completely different way of selling vehicles – basically the complete opposite of the traditional business model. In doing so, we are questioning the conventional process, because a transformation is necessary in order to position the business for the future. Car dealerships are something traditional – there have been few changes in the past.
The reduction of CO2 emissions has long been a goal and was last year placed even more emphasis on green technologies. With this new generation of vehicles, the way they are sold must also change.
Car dealers are stuck in the past and need to modernize. So far, there hasn’t been a good reason for this.
Thanks to Care by Volvo, the manufacturer was able to win a lot of new customers last year – 9 out of 10 People were first-time buyers.
This is a huge success – change ensures permanent further development and new ideas. Our CEO always says that whoever works together wins. That is why we are looking for partners who offer advantages both to our brand and to the entire infrastructure. For the Volvo XC 40, for example, we teamed up with Google because we were convinced that Google had the best technology.
It is clear that Volvo is developing new ways to build and sell cars. Care by Volvo has been available for a number of years, but the past year has shown that there are finally new ways to build customer relationships.
Those were just a few of the highlights our interview with Thomas Bauch. If you’d like to learn more, you can watch the full interview below.