STOCKHOLM -- Volvo Cars is ending dealer agreements with retail group Bilia in Sweden and Norway.
Volvo is trying to boost online sales to maintain volumes despite temporary closures of dealerships around the world to slow the spread of COVID-19. Volvo aims to more than double global online sales to 50 percent by 2025.
The termination, which has a notice period of two years, covers both Bilia's car sales and services business for Volvo models.
Bilia is a leading Nordic dealership with about 140 facilities mostly in Sweden and Norway.
It said its turnover for sales of new Volvo cars in Sweden and Norway was about 6.4 billion Swedish crowns ($743 million) in 2019, compared with 29.5 billion crowns in total revenue for the group.
Bilia is No. 11 on the annual ranking of Europe's largest dealer groups, figures from analyst ICDP show.