Volvo invests in Carwow

volvo-invests-in-carwow

Volvo Cars, through its venture capital arm Volvo Cars Tech Fund, makes a strategic investment in London-based online marketplace company Carwow.

KEY TAKEAWAYS

  • How does Volvo's investment in Carwow help the company in online car sales?

    Volvo Cars' investment in Carwow allows the company to gain insight into online car buying behaviors and use it as it ramps up its online car sales.
  • In what other way does this partnership help Volvo in terms of its existing sales?

    The investment in Carwow also includes collaborative efforts that will drive traffic and sales leads to Volvo and its retail partners.
  • With its investment, Volvo will gain valuable insights in areas such as online sales, customer acquisition, and content creation, which will help its shift toward online and direct customer relationships. In 2021, Volvo Cars announced that it is planning to move the sales of its electric vehicles online and offer a more comprehensive, appealing, and transparent service. The shift to online sales will most likely see the formation of a fully electric division under the name Volvo Cares.

    “Third-party marketplaces play a key role in any consumer industry, which includes the competitive landscape of Volvo Cars. We were one of the first car manufacturers committed to shift to online sales, and through this strategic partnership, we will learn and gain insights into online buying behavior. Our collaboration with Carwow will help us and our retail partners to grow volumes and reach our target of selling around half of our volume online by 2025,” said Volvo Cars Chief Commercial Officer Lex Kerssemakers.

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    Volvo’s recent minority stake in Carwow will allow the former to leverage the latter’s experience in online car sales. The Swedish carmaker is looking to create a simple and hassle-free experience for ordering Volvo products and services, with transparent pricing and product information, as well as clarity on delivery times through its online store.

    In addition, Volvo Cars’ equity investment in carwow will see collaborations on Volvo Cars’ subscription service as well as driving traffic and sales leads to Volvo Cars and its retail partners.

    “Volvo Cars and carwow have the same ambitions: to make buying a car online easy and seamless, and to help consumers switch to electric cars. Our investment in carwow is a good example of how the Volvo Cars Tech Fund aims to support the overall strategic direction of the company,” said Volvo Cars Tech Fund Head Alexander Petrofski.

    Photos from Volvo

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