Volvo explores online car buying, skipping car shows

Volvo to offer entire model range on the internet, but plans to keep dealerships

    Volvo plans to offer its lineup of cars online, according to a report from Reuters. But the company isn't ditching the concept of franchised dealerships entirely -- the cars will still be delivered to customers through the existing dealer network. The automaker also plans to spend more money on digital advertising and to gradually introduce Web sales.

    Volvo sales chief Alain Visser claims the company is planning on offering all cars online in all markets, but "we don't see a car distribution network without dealers in the foreseeable future."

    This approach is likely to exist as an alternative to the traditional way of buying cars when it is launched at more than 2,000 Volvo dealerships across the globe, but there are risks involved for the company. A number of automakers and dealership chains have introduced online ordering components into the franchised dealer buying process, but no one has yet attempted online car sales to the extent Volvo is reportedly planning. Visser did not elaborate on how the process would work, or whether it would invoke dealer franchise law issues that Tesla's direct sales approach raised in a costly way for that company.

    The company also announced that it would greatly scale back its presence at major world auto shows, and will concentrate on just three major shows, on each in Asia, North America, and Europe. The company is currently in the process of revamping its entire lineup, with the new 2015 XC90 due to go on sale in the U.S. in just three months.

   In comments to Reuters Visser hinted at a pivot away from traditional automaker spending on marketing. "We're a different brand with limited financial means. We don't believe in building these big palaces."