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Report: Volvo's new chairman wants 7-Series, S-Class rival

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Report: Volvo's new chairman wants 7-Series, S-Class rival

by Zach Bowman (RSS feed) on Aug 4th 2010 at 1:31PM

Geely isn't wasting any time in shaping up its newest acquisition's product line. The Chinese automaker officially completed its deal to purchase Volvo from Ford earlier this week, and already the Swedish brand's new chairman is making noises about a new large luxury sedan to go toe to toe with the likes of the BMW 7 Series and Mercedes-Benz S-Class. Li Shufu, Volvo chairman and co-chair of Geely, said that the brand already competes with luxury German carmakers in most markets, but lacks all of the hardware to do so effectively. To remedy the problem, Li wants to put the rush on a new saloon to take the fight to the Bavarians.

According to the Financial Times, Volvo repeatedly ran into roadblocks when it attempted to develop a large four-door under Ford. Evidently the Blue Oval was concerned about a long-wheelbase Swede nabbing sales from Jaguar – another brand Ford owned at the time. A new Volvo sedan is far from a done deal, though. Li says that the thought of a range-topping sedan is his, and he'll have to convince the company's new board to give it the green light. With an ambitious goal to double Volvo to 600,000 units in five years primarily through growth in large-car loving China, a D-segment player sounds like a good bet – at least for select markets.

link:

http://www.autoblog.com/2010/08/04/report-volvos-new-chairman-wants-7-series-s-class-rival/

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GEELY PLANNING S-CLASS RIVAL FOR VOLVO

By Drew Johnson

Volvo’s current flagship – the S80 sedan – doesn’t really stack up when compared to other top luxury cars from Europe, but the automaker’s new Chinese owners hope to change that in the coming years.

Following shortly after Geely’s purchase of Volvo from Ford, Geely head Li Shufu revealed that the company was already planning a new flagship model to compete with the likes of the Mercedes-Benz S-Class and BMW 7-Series. Although no timeframe was given, Shufu said Volvo is fully capable of building “high level cars that compete with the Mercedes S-Class and BMW 7-Series”.

Shufu continued by saying Volvo had the technology and R&D capabilities to move the entire brand up-market. That up-scale march will coincide with higher retail prices.

The Chinese market will play an important role in Volvo’s move up-scale, but the brand also has to be cautious not to alienate its current clientele with the flash Chinese buyers desire. Former VW boss Stephan Jacoby will be charged with guiding Volvo under Geely’s new leadership, with the next few years promising to be very interesting.

link:

http://www.leftlanenews.com/geely-planning-s-class-rival-for-volvo.html

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Geely Wants Volvo To Compete With BMW And Mercedes-Benz

By Viknesh Vijayenthiran

Editor

August 5th, 2010

We’ve heard it all before but rarely have we seen it executed successfully; mid-tier luxury brands attempting to move upmarket and compete with tier 1 brands luxury brands such as Mercedes-Benz and BMW. Acura is one such company that has often stated reaching tier 1 status as its primary goal but has still failed to deliver.

Now Volvo’s new owner Geely hopes to do the same with the Swedish automaker, as revealed by founder and chairman Li Shufu. He hopes to boost Volvo’s global reputation, especially in China, and step up research and development efforts in order to maximize sales bring Volvo back into profitability.

"We want to make more high-level cars that compete with the S-Class of Mercedes-Benz and the 7-Series of BMW. We need products to compete in that segment," Shufu told reporters from Automotive News.

What Shufu hasn’t revealed yet is how Volvo, which lost more than $653 million last year, will be able to build new models to take on the flagship sedans from its German rivals. Volvo first needs to focus on selling more cars; it will need to sell at least 380,000 cars if it hopes to break even. Last year Volvo’s

link:

http://www.motorauthority.com/blog/1047985_geely-wants-volvo-to-compete-with-bmw-and-mercedes-benz

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