China’s Geely Automobile issues termination of dealership agreement with Sweden’s Bilia

In a statement, Swedish car dealership chain Bilia said, it has received a notice of termination for its dealer agreements with Volvo Cars in Norway and Sweden.

The termination, which has a notice period of two years, covers both Bilia’s car sales and services business for Volvo models.

In 2019, Bilia, a leading Nordic dealership with around 140 facilities mostly in Sweden and Norway, saw its turnover of new Volvo cars in Norway and Sweden touch around $743 million (6.4 billion Swedish crowns), compared to 29.5 billion in total for the group.

“The Car Business is subject to a global transformation and we are convinced that Bilia will continue to play a central role also in the future,” said Bilia CEO Per Avander in a statement.

Incidentally, since sales of used cars are not covered by the dealer agreements hence they are not affected by the termination.

Volvo is making efforts to boost online sales, which has accelerated during the pandemic, and aims to sell 50% of its global volume online by 2025.

Earlier in September, Volvo announced it was buying Upplands Motor, another major Swedish dealership, and that it planned a full takeover of retailer Bra Bil, seeking to merge the two businesses with its own dealership Volvo Bil.

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