Total cost of ownership for Volvos looks set to fall following an admission that the Swedish brand is targeting SMR as a key focus this year, illustrated by the recent appointment of a new TCO manager in Peter Johnson, whose job will be to work with the industry’s residual value experts and look at the way Volvos are specced for the UK.

“With simple things like tyres, if you put the right ones on you can save £30 a corner, which to a corporate guy doing 30,000 miles per year can make a hell of a difference,” Volvo national corporate operations manager Selwyn Cooper told BusinessCar.

“We see SMR as key – you can get some real quick wins.”

Volvo has also recently appointed a total cost of ownership manager at factory level, and Cooper said the UK’s attempts to make improvements are like “pushing at an open door – TCO is at the heart of everything we do”.

“It’s about giving us the opportunity to compete,” he continued. “And our attitude to short-churn helps us as we’re not a brand that advocates self-registration in the dealer network, and we’ve reduced daily rental – all of these things help build brand and TCO.”

Volvo grew its corporate sales by around 10% last year, despite losing share in Motability, after changes to the scheme ruled the V70 out on cost grounds, while the V50 in particular, along with the S40 and C30, came to the end of their production lives.

For 2013 Cooper is predicting the firm will grow its fleet sales by 2000 cars. That’s a full year of the new V40, countered by losing 9000 units for products that ended their life in 2012, and slight decreases for some other model lines.

“Our aspiration is to get to 40,000 by 2015,” he declared, up from the 32,000 achieved last year.

The firm is also launching a new test drive programme. Called Freedom, it’s a 13-date tour of England, Scotland and Wales between March and June, which will allow customers up to two 45-minute unaccompanied test drives.

“It will allow a proper immersion in the car and we’re encouraging people to come with their kids, dog or even canoe, to try the car however they would use it in real life,” said Cooper. “It will be self-service, not a pressured sales environment.”

See www.volvocars.co.uk/freedom for the full list of dates and venues.

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