Volvo Cars has taken a strategic minority stake in carwow, a leading online marketplace for buying and selling cars, through the Volvo Cars Tech Fund, its venture capital arm.
As a leading platform in Europe for buying new cars and helping consumers sell their current car online, carwow has experienced considerable growth in recent years and is now one of the market leaders in the UK, Germany and Spain for online sales of new cars.
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.
The equity investment is the next step in the existing partnership between Volvo Cars and carwow, which includes collaborations on Volvo Cars’ subscription service as well as driving traffic and sales leads to Volvo Cars and its retail partners.
“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 to grow volumes and reach our target of selling around half of our volume online by 2025.”
Volvo Cars’ move towards online sales is integral to its aim of becoming a global leader in the fast-growing premium electric segment, with millions of direct consumer relationships. Its 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.
The company’s focus on online sales and direct customer relationships includes creating a simple and hassle-free experience for ordering Volvo products and services, with transparent pricing and product information, as well as clarity on delivery times through its online store on volvocars.com.
“Volvo Cars and carwow have the same ambitions: to make buying a car online easy and seamless, and to help consumers switch to electric cars,” said Alexander Petrofski, Head of the Volvo Cars Tech Fund. “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.”
As one of the leading online marketplaces for new cars across the UK, Germany and Spain, carwow is headquartered in London and employs more than 400 people across Europe. Having started life as a reviews aggregator, it has also become one of the most influential names in consumer car media. Its automotive channel on YouTube has more than six million subscribers and counting.
Financial details of the Volvo Cars Tech Fund investment in carwow were not disclosed.
Volvo Cars in 2021
Volvo Car Group recorded an operating profit of 20.3 BSEK. Revenue in 2021 amounted to 282.0 BSEK, while global sales reached 698,700 cars.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world, with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker “VOLCAR B”.
Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This is reflected in its ambition to become a fully electric car maker by 2030 and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.
As of December 2020, Volvo Cars employed approximately 40,000 full-time employees. Volvo Cars' head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars' production plants are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg, Camarillo (US), Sunnyvale (US) and Shanghai (China).
For further information, please contact:
Volvo Cars Media Relations
+46 31-59 65 25
Volvo Cars Investor Relations
+46 31-793 94 00
carwow is Europe's leading online marketplace for buying new cars and helping consumers sell their current car.
carwow’s mission is to help consumers with anything to do with their car. Cars are most people's second largest purchase in life, and most household's second biggest regular expense. carwow gives consumers confidence by offering a full and personalised view of the market and then connecting them with trusted suppliers.
carwow is the No1 online marketplace for new cars across the UK, Germany and Spain. It has an internal mission to simplify the online car buying and selling process, and increase the speed of the electric car revolution by encouraging consumers to make the switch to electric.
In 2021, carwow launched Sell Your Car, allowing consumers to list their car for sale by uploading photos, then inviting dealers to bid to buy the car from them.
Having started life as a reviews aggregator, carwow has also become one of the most influential names in consumer car media, with the biggest automotive channel on YouTube (over six million subscribers), led by Mat Watson.
Headquartered in London, carwow employs over 400 people in the UK, Germany, Portugal and Spain with the backing of some of the most prestigious technology and automotive investors, including Balderton Capital, Accel, Vitruvian Partners, Episode1, Mercedes-Benz and Volvo.