Volvo Cars has taken a minority stake in Carwow, Europe’s online car retailer, a Financial Times report announced on Tuesday (April 26th).
The Swedish brand plans to sell half of its cars online by 2025, and its stake in Carwow will boost Volvo’s digital sales and social media appeal. Volvo currently has around 1 in 10 of its new models sold online only.
The report notes that Magnus Fredin, who heads Volvo’s online business, said it will help Volvo “learn and accelerate our transition online”.
“It’s important to stand out in the world today,” Fredin said. “We need to tailor the content to what customers are looking for.”
London-based Carwow is the largest new car sales platform in the UK, Germany and Spain. The company also has a large following on YouTube.
FT wrote that Volvo’s other goal is to emulate the success Carwow has had with video. His YouTube channel gets 70 million views a month with posts about car reviews, drag racing, and more.
The report says Volvo’s technology fund investment is in the “tens of millions” of pounds.
Carwow was launched in 2009, at the time a review aggregator. Since then, it has turned into a sales platform, with a marketplace and videos.
See also: Volvo’s new CEO: We need more control over our software
PYMNTS wrote that Volvo’s new CEO, Jim Rowan, said the company will need to take more control over the software it develops and deploys for vehicles.
He said increasing the computing power of cars would reshape the industry in more important ways than even the switch from combustion to electric.
He said that because of this, Volvo should be “much smarter about the decisions we make about whether to make or buy software, and we’re going to have to understand software on a much more vestral level than before.” .