Bilia has 69 facilities in five regions in Sweden: Stockholm, Mälardalen, Gothenburg, Malmö and Skaraborg. Bilia sells new and used cars, provides service and repairs, and offers peripheral services such as a tyre hotel and glass repairs. The Swedish operation sells seven new car brands: Volvo, Renault, Ford, Hyundai, BMW, Mini and Dacia.
In an increasingly competitive market situation, Bilia has a strong position as the country’s biggest car dealer.
The company’s market share for new cars is 8.1 per cent (7.8). The market has recovered following the financial crisis, and 2010 was a strong year with a good workload in the workshops and increased sales of both new and used cars.
The Swedish market for new cars increased during the year by 36 per cent to 289,684 cars (213,408). Bilia delivered 23,361 new cars (16,701), 20,548 used cars (17,772), 1,673 new transport vehicles (1,161) and 967 used transport vehicles (999).
In the summer of 2010, an agreement was signed to acquire Bilcentralen i Stockholm AB. The operation is included in Bilia as from 2011. The company is profitable and the deal strengthens Bilia’s position with the BMW brand.
A change is taking place in the Service Business, from a focus on production and processes to more focus on sales.
An overall goal for Bilia is to be a full-service supplier that offers the customer everything he needs for his car ownership. Several business segments are under development, for example the market shares in the tyre and glass business increased during 2010.
One of the most important strategies for tying the customers closer to Bilia is service subscriptions. At year-end nearly 7,000 customers had signed up for a subscription.
Bilia took action early during the most recent business slump. New concepts were introduced, e.g. for handling of used cars, which has had a positive effect on the used car business. Stocks were reduced, the turnover rate increased and pricing became more dynamic. These measures have reduced tied-up capital and improved efficiency. Now that the market has recovered, the measures are continuing to have a positive influence on the company’s profitability.
Additional steps were taken during 2010 to rationalise operations. For example, efforts have continued to centralise staff functions such as human resources, payroll administration and delivery administration, freeing up time for sales of products and services.
Net turnover in Sweden amounted to SEK 10,456 M (8,357). This is equivalent to 64 per cent (61) of total turnover in the Group. Operating profit amounted to SEK 401 M (241).