Volvo Growth Strategy: Tony Nicolosi, new President and CEO of Volvo Cars of North America says 90% of the senior management of VCNA is new since he took over in October 2013. Volvo’s marketing strategy is also going to change with the arrival in January of Bodil Eriksson as executive vice president of marketing and new advertising agency Grey London starting in March. Nicolosi says Volvo will return to its roots emphasizing safety, the environment and the family. The marketing budget for 2014 is bigger by about 50% but its emphasis will shift away from television to digital messaging.
Prior to becoming head of VCNA, Nicolosi was head of Volvo Finance in the USA, so he is very familiar with the leasing game. About 42% of Volvos are leased, well short of the leasing penetration of Audi, BMW or Mercedes. Going forward, Volvo’s lease penetration should increase with more concentration on more car for the payment and regular replacement. This will give Volvo dealers the first shot at putting off-lease customers into a new Volvo.
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