AI Annual Report 2019 1
WORDS FROM OUR CEO 2019 was a year of improvement
s for the Hedin Group. That is the product of an intense focus on the improvement of the customer offer, while we simultaneously are working to increase efficiency in all parts of the Group. The impact of changes in drivetrains and emission and tax regulations continues to affect the market. Our home markets Sweden, Norway and Belgium all increased the share of plug-in electric vehicles (PEVs). In Sweden, the registration of new passenger cars increased by 0.7 % to 356,000 compared to 2018, while the share of PEVs increased from 8.2 % to 11.4 %. In Belgium, the number of new registrations increased by 0.1 % to 558,000 compared to 2018. The share of PEVs went from 2.4 % to 3.2 %. We are particularly proud that Mercedes-Benz established itself as the number one premium brand in Belgium during 2019. The market in Norway decreased by 3.8 % to 142,000 passenger cars in 2019. The number of PEVs increased from 49.1% to 55.8 %. This means that Norway is still in the lead when it comes to the share of PEVs in the market compared to the rest of the world. It is satisfying to wrap up 2019 after continuing improvements in performance. There are no short cuts to this. The improvement in margins is an ongoing work made up of several components: relevant products, an increased share of aftermarket service plans sold, a competitive offer of add on services such as financing and insurance, and the possibility to offer different ownership solutions focusing on a convenient and predictable customer journey. But an equally important component for success is the focus on cost control and increased efficiency. Many of these improvements are facilitated through the investment in new IT solutions that combine internal organizational support while providing our customers with easy to use front end solutions. We will continue these efforts to realize the economies of scale we get by being one of Europe’s largest car retailers. Considering the recent global development with COVID-19 that has challenged all of us, and the uncertainties it brings, I want to say this: We are a family business that has been successful through good times and bad times for 35 years. Every new crisis is different from the ones before, but every crisis has also made us stronger. This has been possible by being well prepared and by acting quickly to stay competitive in a new environment. I want to thank everyone who contributed to a successful 2019, and I especially want to express my gratitude for all the efforts that are being made in this moment. Anders Hedin, owner and CEO I.A. HEDIN BIL AB / ANNUAL REPORT / 2019 5