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UK to form template for Volvo's fleet future

Date: 23 October 2014   |   Author: Hugh Hunston

Volvo's UK operation, which has generated a 70% fleet sales factor this year, will form the template for the Swedish brand's global business car push, according to Alain Visser, senior vice-president for sales, marketing and customer service.

Visser, a self-confessed "RV management maniac", will work with Volvo's new business sales vice-president, former Kia European sales operation manager Andrew Sellars, in "professionalising" Volvo's approach to residual values in particular and fleet strategy in general, plus fleet channels and disposals.

He defended the British Volvo fleet element, double the firm's global average, stating: "The UK share is not out of proportion when you consider our range and market mix, with no B [supermini] or sub-B retail cars. I consider myself to be a maniac of RV management. It is the one metric determining brand strength in fleet. It is an area in which we need significant improvement.

"We must professionalise our efforts because we have not been good enough. It is about marketing, disposal, how you trade and achieve credibility. Being more proactive with clear strategies with leasing firms, selected daily rental and larger accounts means a unified global approach. None of this is new to the UK operation."

Iain Howat, UK head of sales and pricing, said Volvo suffered from a lack of sub-110hp petrol engines, which would be addressed with the introduction of three-cylinder turbo units for the V40, the leading fleet seller.
Visser said the UK could benefit particularly from a phased realignment of Volvo's E-sector [executive] model portfolio, which would be in place within 18 months. A new S90 saloon, replacing the "ill-fitting" S80, a V90 estate car and front-wheel drive lower CO2 new XC90s will be instrumental in achieving "ambitious targets for growing our user-chooser share of corporate executive car business, the largest part of the premium sector", claimed Visser.

He added: "We have focused on the V40 and XC60 plus to a lesser extent the S60 and V60 in a major segment where we can improve significantly. Our global perception, and particularly in the UK fleet sector, places us above the volume brands, including VW, but clearly below Audi, Mercedes, BMW and probably Jaguar. The new XC90 will lift the brand up a significant notch, but that is just the first step."

Visser conceded that Volvo's product line-up had been out of kilter with major rivals and promised an easier-to-understand model structure, starting with larger cars based on the flexible Scalable Product Architecture.



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