Bilia and Volvo Cars have reached agreement on the future
Bilia has today reached an agreement in principle with Volvo Car Sverige AB and Volvo Car Norway AS on a future cooperation and its main terms. Bilia is very proud and happy about the continued confidence in the sale of new Volvo cars and looks forward to leading the transformation process to tomorrow’s car dealerships with Volvo Cars, with a focus on a modern and worry-free customer experience.
In Sweden, Bilia will continue to be a car dealership for new Volvo cars in the metropolitan areas of Stockholm, Gothenburg, Malmö and Västerås, while Bilia in Norway will leave the metropolitan area of Oslo. Overall, the agreement with Volvo Car Sverige AB and Volvo Car Norway AS implies that Bilia will receive approval to sell new Volvo cars and perform service operations for 34 facilities in Sweden and for 10 facilities in Norway. .
“We are very pleased that in the future we will also be able to operate Volvo operations at 44 facilities in Sweden and Norway. We are proud and happy to be able, together with Volvo Cars, to realize our common ambitions and meet the expectations of Volvo customers, where physical and digital experiences are seamlessly combined., says Per Avander, CEO of the Bilia Group.
As a result of this agreement, Bilia signed a binding letter of intent to sell four facilities at Skaraborg to Bröderna Brandt Personbilar AB. The sale is expected to take place on
January 1, 2022. The Uppsala facility will be sold to a third party, which is expected to take place on July 1, 2022. Negotiations regarding the sale and evaluation of alternative operations are ongoing f. or four smaller facilities in Bergslagen. Bilia will not receive approval for three additional facilities in Sweden, which is why Bilia intends to conduct further operations at these facilities in the future. In Norway, in accordance with the agreement with Volvo Car Norway AS, three facilities located in the Oslo region will be sold to the new company Volvo Car Greater-Oslo AS from July 1, 2022.
The facilities that Bilia intends to sell or replace with other activities have sold new cars, used cars and carried out maintenance for Volvo and in Sweden partly also for Renault. These facilities have averaged over the past three years a total net turnover of approximately SEK 6.2 billion and an operating profit of approximately SEK 280 million.
The parties will now begin final contract negotiations, which are expected to be completed in the fall. All transfers are subject to the approval of the Swedish and Norwegian competition authorities.
Mathias Nilsson, Managing Director of Bilia Personbilar AB in Sweden, says:
“Bilia in Sweden is happy and proud to jointly create and launch new business models with Volvo that combine an on-site and digital customer experience in line with Volvo customer expectations. Bilia wishes and is convinced that we can contribute to the transformation process that we wish to implement together. For Bilia, Volvo is an important and strong partner which is very important for the continued development of Bilia.
Frode Hebnes, CEO of Bilia Personbil AS in Norway, says:
“We are pleased that our long and proud 88 year history with Volvo in Norway now extends into an exciting future, with modernized distribution and customer interaction. We believe this, combined with Volvo’s strong electrification strategy in a highly electrified Norwegian automotive market, will also make us very competitive in the future.
At Bilia, we will have hundreds of highly knowledgeable and enthusiastic employees fully dedicated to creating continued success for Volvo in Norway.
Jessica Span, Managing Director of Volvo Car Sverige AB, says:
“Over the past few months, we have had a constructive dialogue with Bilia on what Volvo Cars expects from a future partner. Going forward, we are delighted that Bilia strives to implement our strategic direction, realizing the ambition to provide our customers with the best possible experience when they encounter our brand, whether online or in retailer showrooms. Thus, Volvo Cars will be solid in launching a new business model based on online sales and direct relationships, offering a seamless customer experience. “
Rita Kristin Broch, Managing Director of Volvo Car Norway AS, says:
“We are delighted to continue with Bilia as a retail partner. Bilia is a very experienced Volvo retailer, with a staff highly knowledgeable in our products and services. Bilia will play an important role in our network going forward, and we are pleased to have an agreement in place that matches our new strategic direction. “
Gothenburg, October 1, 2021
Bilia AB (released)
This is information that Bilia AB (publ) is required to make public in accordance with the EU Market Abuse Regulation. The information has been submitted for publication, through the contact persons indicated above, on October 1, 2021 at 8:00 a.m. CEST.
Facts about the Bilia group
Bilia is one of the largest car dealers in Europe with a leading position in the service and sale of cars, transport vehicles and trucks. Bilia has around 160 sites in Sweden, Norway, Germany, Luxembourg and Belgium. Bilia sells cars of the brand Volvo, BMW, Toyota, Mercedes, Renault, Lexus, MINI, Porsche, Nissan, Dacia, Smart and Alpine and transport vehicles of the brand Renault, Toyota, Mercedes, Nissan and Dacia and trucks of the Mercedes brand.
Bilia today has a fully developed activity with the sale of new cars, e-commerce, spare parts and in-store sales, service and repair workshops, tires and windows and financing, insurance, car washes, gas stations and car recovery under one roof, which gives a unique offer.
Bilia had sales of around SEK 30 billion in 2020 and had around 4,700 employees.
Bilia and Volvo Cars have reached agreement on future cooperation