AM Online article: Volvo to reveal approach to agency model as part of special panel at AM Live 2023

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This article first appeared in an August article for AM Online manufacturers.

 

Volvo Car UK will reveal how it has worked with retail partners to develop its agency model at Automotive Management Live after the Swedish brand decided to delay its introduction earlier this year.

The agency model, which went live on June 13 with the whole range available direct and online,  will be under the microscope as part of a special panel debate and Q&A session at this year’s AM Live show at the Birmingham NEC on November 9.

Kristian Elvefors, Managing Director, Volvo Car UK, will join Miles Trower, TLT partner and NFDA retained legal advisor and Steve Young, ICDP managing director in a discussion looking at how the industry's business models are evolving, with some OEMs (original equipment manufacturers) switching to a different way of working with their traditional franchised dealers.

The event, brought to you by AM and the National Franchised Dealer Association (NFDA), is free to attend for franchised and independent dealer professionals and offers four focused seminar streams and an exhibition hall packed with the latest innovations from the UK’s leading automotive retail suppliers.

 

 

After Lotus in 2022, Mercedes-Benz was the first major brand to launch with an agency model in the UK in January 2023, while both Stellantis and Volkswagen Group are planning to switch franchisees to agency contracts, but have delayed their plans to fine tune their plans.

Ford also confirmed in May that it will also be switching to an agency model for all of its vehicle sales in the UK, although this is unlikely to be introduced until 2024 at the earliest while it gathers data for its test market for agency in the Netherlands.

Volvo, which was one of the first UK national sales companies to sell new and used cars online, established a direct-to-consumer working group with its franchised dealers to help shape how the agency model will work and also chose to delay its launch earlier this year to allow more time to test and fine tune how it will work.

Elvefors will be sharing customer data on how the agency has been received so far, as well as further detail on how it developed a collaborative approach with its dealer network agents.

Trower (pictured above) has been working closely with the NFDA to help the Competition Markets Authority (CMA) understand the implications of the agency model and how it will affect relationships between motor retailers and car manufacturers.

He will also be looking at differing agency model approaches as well as the potential for a new industry code of practice.

Young believes the agency model is the best way to deliver a truly omnichannel retail experience for customers.

However, this means OEMs need to understand and expand their retailing skills and systems to make the transition work well.

Young said: “Under agency, OEMs will be responsible for all inventory, demand generation, brand promotion and pricing and they have many new roles which they need to perform better than their retailers did on their behalf.

“Many manufacturers have under-estimated the new challenges that this brings.”

Young will be able to share ICDP’s research on the different approaches taken so far and will prompt debate on the positives, as well as the challenges that remain.

The Big Agency Model Debate is just one of many panels and presentations that will be available to franchised and independent dealers that secure their free ticket for AM Live at the NEC on November 9. The seminar content across the day will be split between Digital, Sales, Aftersales and Strategy, covering all the biggest industry topics including the agency retail model, disruptor EV brands entering the UK market, used car data science, electric vehicle profits and more.

 

This article first appeared in an August article for AM Online manufacturers.