Volvo Cars has taken a strategic minority stake in the online marketplace for buying and selling cars Carwow through the Volvo Cars Tech Fund, its venture capital arm.
Through the investment, Volvo Cars will gain valuable insights in areas such as online sales, customer acquisition and content creation, which will help its shift towards online and direct customer relationships, it says.
“Third-party marketplaces play a key role in any consumer industry, which includes the competitive landscape of Volvo Cars,” said Lex Kerssemakers, chief commercial officer at Volvo Cars.
“We were one of the first car manufacturers committed to shift to online sales and through this strategic partnership, we will learn and gain insights into online buying behaviour.
“Our collaboration with Carwow will help us and our retail partners grow volumes and reach our target of selling around half of our volume online by 2025.”
Volvo Cars’ online sales strategy is based on changing consumer behaviours and industry trends in combination with its ambition to be a leading pure electric car brand by 2030.
Alexander Petrofski, head of the Volvo Cars Tech Fund, said: “Volvo Cars and Carwow have the same ambitions: to make buying a car online easy and seamless and help consumers switch to electric cars.
“Our investment in carwow is a good example of how the Volvo Cars Tech Fund aims to support the overall strategic direction of the company.”
Providing an online marketplace for new cars across the UK, Germany and Spain, Carwow is headquartered in London and employs more than 400 people across Europe.
Financial details of the Volvo Cars Tech Fund investment in Carwow were not disclosed.