With a new propulsion system comes a new mindset to purchase it.Īlso joining Ford is the Volkswagen brand, which is rolling out a new IT system to coincide with the launch of its new ID family of electric cars that incorporates online sales as part of a wider shakeup of its relationship with its dealers and customers. The springboard for Ford's rollout of an online ordering system will be next year's launch of its first stand-alone electric vehicle - the so-called "Mustang-inspired" battery-powered SUV. It's all about not prescribing how you want your customers to behave," Roelant de Waard, Ford of Europe general manager of passenger vehicles, told Automotive News Europe. ![]() "We have to offer customers another way in. The shift to online sales, automakers say, is in response to customer demand. However, as technological change starts affecting not just the car but also what it means to "own" a car, automakers in Europe are slowly building the capability to move the whole car-buying process online. The absence of an Uber or Deliveroo for car buying means automakers haven't felt the pressure to substantially alter a model that is almost as old as the cars they sell. But while research into car buying has emphatically moved online, the actual car purchase has remained stubbornly linked to a physical dealership. The carmaker will aim to bundle connected services such as insurance, servicing and home charging.Online disruptors have dramatically changed how we spend our money, whether on food delivery, taxis, TV shows or vacations. Samuelsson said it would not reduce dealer profits, but that standardised bundles of optional extras would cut the costs of offering extensive lists of trim and technology choices. It could also reduce under-pressure dealerships’ independence and ability to negotiate. Volvo’s move to online sales is part of a broader move by carmakers to build direct relationships with customers. Many legacy automotive companies have forged closer links with other brands within larger groups or even between competitors in order to spread the costs of electric vehicle development. Volvo and Geely Autos last week scrapped plans to merge their operations, but said they would share more electric vehicle technology and software. Geely, one of the few large Chinese carmakers not controlled by the state, has sought to expand in recent years. Volvo is owned by Geely, a Chinese conglomerate run by billionaire Li Shufu that also owns British sportscar brand Lotus and British electric taxi and van manufacturer LEVC. The company recorded its best-ever profits in the second half of 2020 as the Chinese market rebounded from the fall in sales at the start of the coronavirus pandemic. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.” “We are firmly committed to becoming an electric-only carmaker and the transition should happen by 2030. ![]() “There is no long-term future for cars with an internal combustion engine,” said Henrik Green, the Volvo chief technology officer. That allowed it to sell emissions credits to Ford for an undisclosed sum, helping the US carmaker avoid steep fines. Its electrified portfolio meant that Volvo easily achieved EU-mandated emissions targets in 2020. Volvo also sells several plug-in hybrid electric vehicles. However, its higher-margin premium cars allowed it to be among the more advanced European legacy carmakers in the transition away from fossil fuels, including the launch of its Polestar all-electric brand to rival US electric car pioneer Tesla. Volvo last year launched its first fully electric car, the XC40 Recharge, and it will unveil a new electric 40 Series on Tuesday. However, a customer in 2025 will probably still pay more compared with an equivalent hybrid version, Samuelsson said. In the longer term, the cost of manufacturing electric cars would be lower, he said, achieved through reducing the number of complex systems in the car and cutting the number of separate computers needed. Samuelsson added that he expected the cost of manufacturing an electric car to drop to the same level as internal combustion engine cars by 2025. Jaguar’s move had “encouraged us to be a bit braver”, Samuelsson said. Rivals that have in 2021 unveiled formal plans to abandon fossil fuels include the Jaguar brand (by 2025) and luxury carmaker Bentley (by 2030). We are fully focused on becoming a leader in the fast-growing premium electric segment.” “So instead of investing in a shrinking business, we choose to invest in the future – electric and online. “To remain successful, we need profitable growth,” he said. He expected the carmaker’s sales to continue to grow as it moved to electric technology. Håkan Samuelsson, the Volvo chief executive, said the company did not want to be stuck targeting a shrinking market for petrol and diesel cars.
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