Volvo ’ – Recently as part of our new peer networking

Recently, as part of our new peer networking series, we received a virtual briefing on the impact of VOCID-19 on the automotive industry and marketing with Trevor Hettesheimer Director of Key Performance Indicators, Analysis, Research and Planning at Volvo. As part of our new peer networking initiative, Hettesheimer shares “his” insights and data on how VOCID-19 has dramatically changed the way Volvo does business. Volvo has also explored which dealers can continue to sell online and how they can safely deliver cars to customers or give consumers in a restricted area the opportunity to have their cars serviced. Volvo’s Trevor Hettesheimer provides an overview of the impact of COVID-19 on the automotive industry and how the company is adapting its marketing approach accordingly. Volvo then attempts to determine the commercial impact of the virus by the end of 2020, distinguishing four stages of the retail assumptions, namely understanding the extent and severity of the impact of the virus on its sales and service activities. The factories in the United States and Europe were temporarily closed, which, combined with the remote working environment, had a significant impact on Volvo’s approach to cooperation and marketing. Looking ahead, Hettesheimer summarizes the four most important steps that companies can use to make commercial and marketing decisions as follows. Based on the above assessment, Hettesheimer concluded that the largest decline in sales is expected to occur in April, with sales likely to decrease by 60-80% compared to what was expected in early 2020. Volvo is trying to predict when dealers will reopen and when consumers will start buying cars, after the economic recovery in the United States. Hettesheimer is also responsible for Volvo’s marketing activities and paid search engine marketing in the US. If we look at the automotive industry before and after the virus, car sales forecasts have dropped dramatically. This allowed them to control their short-term profitability and cash flow, as sales fell drastically while they continued to invest in the company in the long term. Throughout April, all of Volvo’s national marketing channels are dark, although it is still possible to show some local advertising.