Volvo Cars Will Terminate Dealer Agreements with Bilia

Swedish car dealership chain Bilia said on Tuesday morning it received notice of termination for its dealer agreements with Volvo Cars in Norway and Sweden. The company said that the termination, which has a notice period of two years, covers both Bilia’s car sales and services business for the Volvo models.

Swedish car dealership chain Bilia said on Tuesday morning it received notice of termination for its dealer agreements with Volvo Cars in Norway and Sweden.

According to a Business Insider report, Volvo decided to terminate the agreements as it tries to boost online sales to maintain volumes, despite temporary closures of leaderships around the world to slow the spread of the COVID-19.

The company said that the termination, which has a notice period of two years, covers both Bilia’s car sales and services business for the Volvo models.

“The Car Business is subject to a global transformation and we are convinced that Bilia will continue to play a central role also in the future,” Bilia CEO Per Avander said in a statement, pointing out that the sales of used cars were not covered by the dealer agreements and hence not affected by the termination.

Bilia, which is a leading Nordic dealership with around 140 facilities mostly in Sweden and Norway, pointed out that its turnover for sales of new Volvo cars in the two Nordic nations was about $743 million last year, compared to $3,715 billion in total for the group.


© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.