On February 2, 2020, Volvo announced that, in response to the severe situation of the new coronavirus pneumonia epidemic, it has launched a dealer care policy to reduce the elite and financial pressure on dealers, specifically including: releasing the performance appraisal without setting a February sales target; and providing a total of more than ten million dollars in subsidies for dealers' staffs directly in order to reduce the dealers' financial pressure.
Meanwhile, Volvo also said it is negotiating with banks to reduce the risk of repayment due to a small number of dealers, extend the exemption period on the basis of the agreed opening date for projects such as new authorized 4S stores in the under-construction stage; suspend on-site inspection projects such as dealer standard audits; suspend face-to-face courses and in-store coaching to strengthen the content of the online courses; and strengthen the online marketing inputs and support in the near future.
Chin Peiji, president of Volvo Cars Greater China Sales, has said, "We don't care too much about whether the sales volume is high or low every month, but we want to maintain a medium-term equilibrium, and we are particularly concerned about the profitability of the channel and the inventory factor. Volvo is determined not to do the behavior of harvesting short-term benefits."
In the face of the epidemic, on January 31, Volvo Cars (Asia Pacific) Investment Holdings Ltd. directed support to the Shanghai Municipal Public **** Health Clinical Center with the first batch of 1 million yuan of donations to the new coronavirus pathogenesis, clinical treatment research, vaccine research and development, as well as the development of related drugs. The company also donated 10 million yuan of medical emergency supplies and equipment to the Shanghai Public **** Health Clinical Center and some of the city's top three hospitals for the prevention and control of the epidemic. Not only Volvo, a number of car companies have donated to contribute to the fight against the epidemic.
Data shows that Volvo's 2019 global sales exceeded 700,000 units for the first time, up 9.8% year-on-year, and mainland sales exceeded 150,000 units for the first time, with the main models XC90, XC60, and S90 all growing by more than 20% year-on-year.
Distance Focus Viewpoint
In the situation of the new coronavirus pneumonia epidemic, people have been less out of the house or even do not go out, car dealers stores customer traffic fell sharply, a large number of orders vehicle delivery difficulties. Even if there is no epidemic, affected by the Spring Festival factors, dealers are also facing greater pressure in February. Therefore, Volvo's move will reduce dealer pressure to a large extent. 2003, although affected by SARS, domestic auto sales still completed 4,390,800 units, an increase of 34.21% year-on-year. At that time, the domestic car market is still in a period of high growth, while entering the stock market in 2020 is not the same. Coupled with the epidemic-hit area of Hubei is supposed to be an important production base for the automotive industry, 2020 car companies obviously need to continue to ****k the time.
This article comes from the author of the automobile home car family, does not represent the views of the automobile home position.