since 1976
since 1976
2018 seems to be a good year for many automotive companies and Volvo Car Malaysia (VCM) is one of them. This company recorded strong growth in volume last year having delivered 1384 Volvo cars, a 35-per cent increase from 2017 (1021 cars) and 48 per cent increase from 2016 (934).
VCM sees this positive sales progression as a testament to the transformation plan that it had put in motion since the introduction of the XC90 T8 Twin Engine in late 2015. This transformation plan was led by the managing director, Lennart Stegland, and saw a multi-pronged strategy involving an overhaul of retail operations, customer touch points and product offerings in Malaysia.
The success of this plan was also reflected in the strong exports with the company recording 1889 Volvo cars being shipped out. They included the Volvo V40, XC40, S60, V60, XC60 and XC90 that were exported to Thailand, Taiwan, the Philippines and Vietnam.
This export programme was realised through investments made to the plant in Shah Alam to accommodate more assembly volume and new platforms such as the Scalable Product Architecture (SPA) that underpins the new 60s and 90s range, and the Modular Compact Architecture (MCA) used by the new XC40.
Stegland said: “From a consumer standpoint, the first visible change to our existing retail operations is the implementation of Volvo Retail Experience (VRE), a dealer standard that perfectly complements our new and exciting product line.” VRE is explained as a comprehensive standard that covers critical aspects of a dealership and aims to bring a more customer-focused experience based on Volvo’s Scandinavian-inspired values.
This transformation also took into consideration customer service experience and was said to have yielded positive results after extensive training and programmes were rolled out to service advisors nationwide. VCM said its Customer Experience Management (CEM) scores, gathered from a survey of service customers, had doubled from 2017.
The Volvo Service Agreement (VSA) was also unveiled in 2018. It includes a comprehensive service package that covers replacement of most wear-and-tear parts (excluding tyres) and car owners are given the choice of a three- or five-year VSA plan. “It is common practice within the industry to include the cost of service packages into the car price. We are challenging this by being transparent about these costs and letting the customers select a plan that suits their individual preferences,” Stegland added.
Moving forward, VCM is introducing a new service concept in 2019 called Volvo Personalised Service or VPS. And sometime this year, a new management system to ensure optimum availability of parts called Volvo Managed Inventory (VMI) would be rolled out.
In dealerships, VCM has grown its nationwide presence to 11 that include the recent re-introduction of the brand in Kuching after close to 10 years. Naturally, the company aims to add more dealerships this year, especially in locations that are currently not represented by the Volvo brand.
The company also initiated several model launches in 2018, including the XC90 T5, S90 T5, XC60 T8 Twin Engine and the new XC40 T5 R-Design. Market response is said to be positive for most of them with the XC60 recording the most gains in Volvos delivered and the XC40 enjoying a strong order book.
VCM also introduced Volvo Car Leasing, a first for Volvo Cars in Southeast Asia, and it is planning to launch Volvo Insurance in partnership with AXA Insurance later this year. For 2019, the company is projecting a double-digit growth with the new XC40 and the opening of more retail locations as the two main drivers.
Stegland, who is retiring shortly after 40 years of service with Volvo Cars, sees his good work in Malaysia being continued by the new man at the helm, Nalin Jain, who steps in as managing director from March 1. Prior to this undertaking, Jain was the Chief Financial Officer of Volvo Auto India and has more than 20 years of experience in the automotive, consulting and technology fields. He holds a Master’s Degree in Engineering from State University of New York and an MBA from the Sloan School of Management in MIT.
