Volvo’s ambitious plan to sell electric vehicles online only is drawing the ire of dealers in the brand’s largest U.S. market — California.
The company this month announced plans to move to a digital-only, fixed-price sales model for its expanding fleet of battery-powered models. The automaker also said it would become an EV-only brand globally by 2030.
But the California New Car Dealers Association, which represents about 20 Volvo dealers, said the proposed retail model would violate state laws meant to prohibit manufacturers from competing with franchisees.
“We are concerned that Volvo’s planned program would be illegal in the state of California,” the group noted in a letter sent to Volvo’s legal counsel. “CNCDA’s Volvo dealer members have invested millions of dollars in facilities and personnel with a justifiable understanding that they would be partnering with Volvo as a dealer, not a mere delivery agent.”
The Texas Automobile Dealers Association has also sent a similar letter to Volvo.
“We expect them to comply with Texas law,” association President Darren Whitehurst said.
California association President Brian Maas said the dealer group is putting Volvo “on notice.”
“We are paying close attention to what Volvo is doing and we want to make sure they comply with the law,” Maas said.
A Volvo spokesman did not respond to requests for comment Friday.
Volvo Car USA CEO Anders Gustafsson previously told Automotive News that dealers will continue to sell EVs and maintain customer relationships under the new sales model.
“We have been very clear with that,” Gustafsson said. “We will, of course, push things a little bit and see if we can develop this industry, especially related to digitalization.”
