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VOLVO XC90

The Hits Keep Coming for Volvo

May 23, 2016 by admin 1 Comment

With fresh product in and more on the way, Volvo is enjoying record sales on a global scale.

It wasn’t too long ago some analysts had suggested the Volvo Car Corporation might exit the US market, if not give up on the business of building passenger vehicles entirely. In 2014 the automaker sold just 56,366 units in the US, continuing on a downward spiral while its competitors emerged from the last recession stronger and with robust sales to go with it.

2016 Volvo S60 Inscription

From Ford to Geely

Purchased by the Ford Motor Company in 1999 before it went to China’s Zhejiang Geely Holdings in 2010, Volvo is not as dependent on the US market as it once was.

Volvo’s US sales staged a strong rebound in 2015, rising by 24.3 percent to 70,047 units. But that was only part of the story: worldwide, Volvo sold 503,127 vehicles, setting an all-time record. Clearly, Volvo was making a name for itself elsewhere, especially in China.

This year, Volvo’s US sales are up 22.7 percent through April on 22,530 units sold. April also helped Volvo claim 10 consecutive months of double-digit growth, enabling the Swedish automaker to continue to outpace the industry.

New product is helping Volvo’s rebound, particularly its big XC90 SUV, introduced last year. Indeed, nearly half of Volvo’s sales so far this year has come from the XC90 as consumers snapped up 10,856 copies. That’s also more than double the 5,102 units sold for the XC60, its next best-selling model. Without the XC90, Volvo might be posting losses as each of its other models are experiencing year-over-year declines.

Expanding Model Line

As of right now, Volvo offers 10 models covering SUVs (crossovers), wagons, sedans, and elevated (Cross Country) body styles. But that number includes some overlapping — when sedans, wagons and Cross Country models are combined, there are three distinct car lines plus three crossovers present for a total of six product lines.

Volvo has served up a number of concept vehicles in recent years, including Concept 26, an autonomous vehicle. The “26” appellation represents the average daily commute time to work — 26 minutes. Another concept is the Concept Estate, incorporating many of the design cues found in the latest Volvo models such as the t-shaped daytime running light guides.

What Volvo really needs to elevate the brand is a higher-volume entry-level model to serve as an affordable gateway. Previously, it served up the compact C30, a three-door hatchback, and before that it had the compact S40 sedan. Neither model moved the needle much for Volvo, and that is why the current V40 wagon hasn’t been sold in the US.

New Range of Volvo 40 Models

Well, keep that “40” in mind because it will soon represent a new range of small vehicles. Two concepts, dubbed Concept 40.1 and 40.2 were showcased earlier this week, with both models based on Volvo’s new Compact Modular Architecture (CMA), engineered specifically to underpin future small cars.

In a video accompanying the release of the concepts, Thomas Ingenlath, Volvo Senior Vice President Design, explained that the automaker wanted to build high cars as well as low cars, featuring hybrid and electric powertrains.

Said Ingenlath, “Each member of our product family has its own distinct character, just like the members of a real family. CMA has helped us to capture something special, something youthful in our new concept cars. They have an energy, a disruptive and engaging urban character that makes them stand out amongst the crowd. This is the flavour of small Volvos to come.”

Strong financial backing from Geely is enabling Volvo to push well beyond its previous constraints. Thus, the automaker may soon find itself better positioned to battle the premium players.

In a press statement released at the beginning of the year CEO Hakan Samuelsson explained, “Volvo is about to enter the second phase of its global transformation. Once completed, Volvo will have ceased being a minor automotive player and taken its position as a truly global premium car company.”

Looking Ahead

What does the future hold for Volvo? The automaker has an ambitious goal of reaching 800,000 units annually by 2020 with most of that gain realized through its line of all-new small models. Volvo will share that vehicle platform with Geely Motors leveraging scale to spread out its costs.

Before then, the automaker plans to open its first US manufacturing plant, with the new facility coming online in Berkeley County, South Carolina, in 2018. Other Volvo developments underway include electrification across the entire model line, continued advancements in safety innovation, and autonomous vehicles.

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Photo copyright Auto Trends Magazine. All rights reserved.

Filed Under: Automotive News Tagged With: CROSS COUNTRY, crossover, Ford Motor Company, hybrid, PHEV, sedan, SUV, VOLVO, VOLVO CONCEPT 40.1, VOLVO CONCEPT 40.2, VOLVO XC90, ZHEJIANG GEELY HOLDINGS

Volvo Intends to Stay, Thrive in the US

November 20, 2014 by admin 3 Comments

At the 2014 Los Angeles Auto Show.

Routinely, automotive journalists and analysts look at the industry’s smaller players and posit whether these manufacturers will stay around. In recent years Daihatsu, Isuzu, Suzuki and Saab have exited, leaving people guessing whether Mitsubishi, Mazda or Volvo might join them.

Volvo, however, will have none of that. They’ve been saying that they are staying and at the Los Angeles Auto Show on Wednesday they backed up those words with more details.

Reviving its US Presence

Specifically, Volvo says that it intends to revive its US sales and it will do so by renewing its entire product range within the next five years. Volvo has also promised to place a new focus on its dealer network, its management team and spend more money on marketing. Notably, the Swedish automaker plans to update its engine line and expand its safety technologies.

Volvo XC90.
The all-new Volvo XC90.
Volvo also acknowledged that it is currently in the midst of a ten-year drop in US sales. For 2014, Volvo expects to sell 60,000 units stateside. but even before its product line expansion is finished the company expects to sell approximately 100,000 cars annually in the United States. Right now, Volvo is reporting strong sales in Western Europe as well as in China.

“Volvo is in the US to stay. Not only will we stay, we will prosper,” said Håkan Samuelsson, President and Chief Executive of Volvo Cars. “We have a plan and we are implementing it. We sold over 100,000 cars a year in the US in the past. Our initial aim is to get back to that level and in the longer term surpass it.”

Five Volvo Elements

Volvo also identified five elements that are key to its US revival plans and they are:

1. A full renewal of Volvo’s product range is underway and will be completed within five years. The renewal has begun with the all-new XC90 and V60 Cross Country.

2. Brand strengthening will take place as the company plans to double its marketing budget in the next year.

3. Volvo says it will develop its dealer network in a bid to ensure that it has the infrastructure in place to support both brand development and new products.

4. The company plans to protect buyers’ residual values and maintain Volvo’s premium status in the process.

5. Volvo intends to improve its service operations by both ensuring that the dealer network is profitable and by delivering service quality that owners expect.

(See Also —- Isuzu, Toyota Part Ways…Sort Of)

Volvo XC60 Cross Country

The company says that it will meet its goals through its new management team and with new technologies, including Drive-E, representing its latest engine line. Volvo will also continue to lead in safety and connectivity.

The Volvo XC60 Cross Country debuts to American and Canadian customers first. This tall wagon is powered by a 250-horsepower five-cylinder engine and has a ground clearance 2.6 inches higher than the standard V60. Volvo says that the Cross Country is for people that demand all-weather capability, a sporty drive and the latest safety features. Indeed, the Cross Country comes with standard hill descent control, what maintains the vehicle’s speed when driving down steep inclines.

All-new Volvo XC90

Where the Volvo XC60 Cross Country builds on an existing model, the Volvo XC90 is all new. It is also the first model to reflect Volvo’s updated fascia with a more prominent iron mark and T-shaped “Thor’s Hammer” daytime running lights. This model comes with a larger hood, more powerful shoulders and distinctive beltline characteristics. Its rear fascia is marked by tattoo-like rear lights.

The top-of-the-range XC90 Twin Engine is outfitted with a turbocharged and supercharged 2.0-liter gasoline engine. It also has an electric motor, combining for nearly 400 horsepower. Drivers can switch to electric-only mode and drive for approximately 26 miles for pure electric drive. Also available is a T6 engine with a supercharger and a turbocharger, making 320 horsepower and 400 foot-pounds of torque. An eight-speed automatic transmission is standard across the model line.

Winning the Battle

Volvo certainly has a battle on its hands in a bid to grow its presence in the ultra-competitive US market. It just might take Thor bringing his hammer down to give this premium, niche manufacturer a real fighting chance.

Photo courtesy of Volvo North America.


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Filed Under: Automotive News Tagged With: LOS ANGELES AUTO SHOW, REVIVAL PLAN, SUPERCHARGER, TURBOCHARGER, VOLVO, VOLVO CARS, Volvo V60 Cross Country, VOLVO XC90

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