Volvo News: Volvo Announces A New Comeback Plan For The U.S.

[William Maley]

William Maley

Staff Writer - CheersandGears.com

November 13, 2013

Volvo has been seeing its sales double around the world except in one market; the U.S. The Swedish automaker has seen sales in the U.S. tumbling down during the past decade. In 2004, Volvo moved 139,000 vehicles. For this year, the automaker is projecting that they will only sell 60,000 vehicles.

Volvo wants to change that and has announced a new plan that will hopefully reverse this trend. CEO Hakan Samuelsson told dealers the plan for the new Volvo will be an attractive “Scandinavian” design, leadership in safety and environmental issues, and state-of-the-art infotainment systems that feature "clever functionality.”

"We are definitely not even thinking of reducing our presence in the U.S. Volvo would not be Volvo without the U.S," said Samuelsson.

Nearly all aspects of Volvo's U.S. business will be seeing major changes. To start, Volvo is in the process of finding a new ad agency who will be tasked to create a new global campaign and use social media in creative ways. The company will also focus on lease promotions to help boost volume. At the moment, Volvo's lease volume stands at 35 percent.

Down the line, Volvo is hard at work with a new powertrain lineup that will comprise of three and four-cylinder engines that will be naturally-aspirated and turbocharged. In addition, Volvo is creating hybrid powertrains that will use electric rear axles.

Also coming soon will be a number of new models including the V60 wagon and XC90 crossover.

When asked by reporters if Volvo has a set sales goal, executives wouldn't commit to anything higher than 100,000 vehicles in the next three years,

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[David]

I have wondered how the stand alone Volvo dealerships have survived as the one by me needs a major remodel of the show room and they do not have much inventory or seem busy. So how have they survived?

With China now owning them, I know they will make a big effort to survive, but can they over come such large hurdles to really survive in the US market long term?

To me they are a competitor to Buick, Lexus, Acura, not to BMW, MB or Cadillac.

While I think they are quirky auto's, I wonder just how fast they can recover or if they really will to be profitable. Going to be interesting to watch.

[SoCalCTS]

They sell more models in other countries and a bigger line-up results in more sales. I don't understand why they got rid of the S40 here because that is still the car that I see the most.

[Drew Dowdell]

They do need the S40 back. They are trying to make the S60 the base model, but the price is just too high for a base Volvo. They need a Verano sized car starting around $27k.

[William Maley]

They sell more models in other countries and a bigger line-up results in more sales. I don't understand why they got rid of the S40 here because that is still the car that I see the most.

Two reasons.

• S40/V50 really didn't sell well here
• Last-generation S40 was based on Ford's C1 platform and when two broke up, S40 was left without a paddle.

They do need the S40 back. They are trying to make the S60 the base model, but the price is just too high for a base Volvo. They need a Verano sized car starting around $27k.

The best hope we got is the Volvo V40, which is currently not coming to the U.S. at the moment. As I wrote back in August, Volvo's U.S. executives and dealers want that to change.

Volvo's U.S. Dealers and Executives Want The V40

[David]

I think the Chinese will make more changes than anyone will expect as they try to take on the world and grow to be #1.

[daves87rs]

Tough to say if people will still care...