Volvo Car UK has extended its relationship with Paragon in a new contract to manage the remarketing of all the manufacturer’s end-of-term vehicles.
Ian Carlisle, CEO of Paragon
Paragon, which provides used vehicle support to vehicle manufacturers and fleet operators, among its other services, was already handling new car processing, along with demonstration and press services.
In what Paragon is describing as an industry first, it is now providing Volvo with an end-to-end service that spans the vehicle lifecycle, from the docks to de-fleet and remarketing, including the refurbishment of all Volvo Car UK’s fleet vehicles.
The latest contract means Paragon will be managing the remarketing of more than 7,000 cars a year. The company will take full control of all remarketing channels, targeting vehicles to support residual values and reduce days in stock. A key focus is on engagement with Volvo franchise retailers nationwide, and supporting the brand’s growth over the coming years, the company said in a statement.
Commenting on the contract, Ian Carlisle, CEO of Paragon, said, “Retailer habits have changed, and by engaging the retail network and leveraging digital channels, we are able to significantly reduce commodity costs (physical auction) to the manufacturer together with reducing franchise buyer fees, which are commonly a barrier to realising a vehicle's true value if sold at a physical auction.
“By delivering a true end-to-end service, we can evidence improved speed to market through true upstream selling and significant efficiencies,” he added.
Volvo Car sold more than 43,000 units in the UK in 2015, which was its best sales performance in 21 years. That success was helped by the arrival of the new XC90, along with good sales of established models such as the V40/V40 Cross Country and the XC60.
“Paragon brings a new level of flexibility to the remarketing process,” said Selwyn Cooper, head of business sales at Volvo Car UK. “Paragon offers a refreshing approach to our remarketing activity that brings innovation to the process and the flexibility to scale the programme at speed. Pulling together the management of our remarketing and de-fleet into one location makes for smarter decisions and cost savings.”
See the next edition of Finished Vehicle Logistics for an interview with Ian Carlisle in which he talks about capacity pressures on the outbound vehicle supply chain in the UK