Volvo Car Corporation, a division of Ford, plans to restructure its official dealerships in Russia, Kommersant business daily reported on Friday citing Desmond Mullen, the new managing director of Volvo Car Russia.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


On Thursday, Mullen said that in future Volvo Car Russia plans to work “only with those partners that fully meet the high standards set by the company for its dealers all over the world,” Kommersant reported.


Kommersant also said that Volvo Car Russia had got rid of five of its Russian dealers, accounted for 25% of the company’s sales in Russia. The company decided not to renew the contracts for this year with three Moscow dealerships, Kuntsevo, Avtopassage and Avtotemp.


Alexander Ivanov, marketing manager of Volvo Cars Russia, told Kommersant that those companies could have kept their licences if they had proposed a sales development plan.


Ivanov said that the three ex-dealers accounted for no more than 15% of Volvo sales in Moscow, the paper reported.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Earlier, Bovista and Togliatti-based August also lost their Volvo contracts, Kommersant said, although the latter company would remain a Volvo sub-dealer.


Mullen said that the company does not plan to further reduce the number of its dealers but aims to increase sales by expanding its network of subdealers, Kommersant said.


The Prime-Tass news agency noted that Volvo car sales in Russia were almost flat year on year in 2004. On January 13, an official with Volvo Car Russia reportedly said that sales of Volvo cars through its official dealerships in Russia increased a mere 0.4% on the year to 5,048 cars in 2004. In 2003 Volvo Car Russia sold 5,027 cars in Russia, up from 2,929 cars in 2002.


According to Kommersant, in 2004, Volvo Car Russia had more than 20 dealers in 18 regions of Russia, including nine dealers in Moscow.