Bilia’s core business consists of distribution and servicing of cars and transport vehicles in five countries. For new car sales, Bilia needs the approval from the respective general agent, as there are no special rules governing competition for new car sales in the EU. A car manufacturer and/or general agent can unilaterally recall a sales authorisation and terminate the sales agreements with Bilia. In November 2020, Volvo Cars notified Bilia that they are terminating the dealer agreements, in their current form, for Sweden and Norway. Business will continue as normal during the two-year period of notice. Bilia and Volvo Cars have ongoing discussions about a future collaboration. During the year, Renault terminated all dealer agreements in Sweden and intends to review their dealer network in 2021. Volvo, BMW and Toyota are the largest car manufacturers/general agents for Bilia why a recall or termination of authorisation agreements, a changed content and/or balance between the manufacturer/general agent and Bilia could have significant negative impact on Bilia’s operations.
OPPORTUNITIES AND MANAGEMENT
Bilia is not dependent on one single manufacturer/general agent, such as Volvo, but has several business partners. Sales of used cars and the Service Business are not subject to the approval from the general agents for establishment and expansion of business. Bilia therefore intends, regardless of the termination of authorisation by Volvo Cars, to continue with service and repair for Volvo, and to continue selling used Volvo cars also after the two-year notice period. Re-application for authorisation as a service workshop for Volvo has been made. Bilia is also now intensifying its efforts to find new business partners and growth opportunities, in line with the prevailing growth strategy. Good relations with car manufacturers/general agents are a focus area to enable expansion and reduce the risk of sales authorisation for new cars being recalled. Bilia is constantly working to enhance and develop its customer relations with the aim of maintaining a strong position on the market.