Denmark

While Volvo's headquarters are located in Sweden, the luxury and quality which are its commitment to its customers is uniform worldwide. Delivering this global standard in neighboring Denmark is Torben Eckardt, managing director of Volvo's branch there.

"Quite soon after the production in Gothenburg started in the 1920's and 1930's we were in Denmark," he comments. "There was an agent here almost from the same year they started production. It has been considered a home market ever since." Contributing $6 million annually to the gross profit of Volvo international, Volvo Denmark caters to the Danish customer who is looking for quality, safety and luxury.

In a Danish car market totaling 100,000 cars, Volvos have changed from being considered middle-class cars to becoming lifestyle investments. Eckardt estimates that Volvo is competing in the top 3 percent of the market, which translates roughly to 3,000-3,500 cars per year. Best sellers for Volvo in this market area are the V70 station wagon and the S60 sedan models.
Volvo Managing Director Torben Eckardt has used a keen market sense to keep loyal customers and attract new ones.

"We fit very well into the executive management business car level, which is the type of car a top manager would get in Denmark," Eckardt states when describing a typical customer for his luxury segments.

Competing against Volvo are cars of the class of BMW or Audi. Eckardt explains that the Volvo customer chooses Volvo because of its discreet luxury, safety, and comfort. "We really try to connect it to a way of life," he says. "It's a lifestyle. It's a more discreet luxury that you find with a self-assured person who's in control."

Volvo's understanding of this key idea has been integral in retaining its share of the market. Eckardt comments that if a car cannot produce emotion, it will not be successful. With Volvo's outstanding sales and image, it is clear that clients are impressed with the carmaker's latest designs.

Volvo's three-percent share of the Danish car market is rounded out by their Nordic alliance with Renault formed in 1982 which allows them to import Renault cars to Denmark. Renault caters more to the middle market and sells around 7,500 cars yearly, bringing Volvo Denmark's total share to 10 percent of the Danish auto market. To gain greater market share, Eckardt states the he "would love to have a lower price on the base level cars". This is their agenda for 2002.

Addressing the Asian markets, Eckardt reinforces Volvo's continued dedication to Japan, saying that the company still considers it a very important market.

As dedication to markets valuable to them is something for which Volvo has long been known, Eckardt's words come as no surprise when he states: "We're very proud of Volvo here in Denmark. We work very hard to protect and develop the brand. We're still here supplying the Danish people and will be for years to come."

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