View Full Version : Volvo Underestimates Demand For XC90 By A Factor Of Five



tarrbot
04-22-2015, 02:40 PM
I knew there was a lot of demand for the XC90 but this was eye-opening.


http://insideevs.com/volvo-underestimates-demand-phev-xc90/

goVolvo
04-22-2015, 02:45 PM
I knew there was a lot of demand for the XC90 but this was eye-opening.


http://insideevs.com/volvo-underestimates-demand-phev-xc90/

That's the bad part for U.S. where the price is announced several months later than other market, and after they realized T8 is underestimated.

Just an example, the price in Canada is $3k to $5k cheaper compared to U.S. price.

Brutus99
04-22-2015, 03:57 PM
I just hope they don't raise the Canadian price for the T8 because it is cheaper than in US when you convert the $ :D

goVolvo
04-22-2015, 04:10 PM
I just hope they don't raise the Canadian price for the T8 because it is cheaper than in US when you convert the $ :D

If you grab one now, I don't think they can raise the price, but still possible to reduce some options. ;)

Brutus99
04-22-2015, 04:15 PM
If you grab one now, I don't think they can raise the price, but still possible to reduce some options. ;)

I know, I'm just playing the waiting game I guess :p Really want to test drive the T6 at least.

Swagger XC
04-22-2015, 04:25 PM
I was at my local dealer asking about it and they said they had their first one in about 1 hour before I got there and it was delivered about 30 mins after it arrived. They were due for stock this month but due to the pre sale likely won't have anything available ti July. And even then they'll go quickly.

Gc52
04-22-2015, 05:40 PM
I was at my local dealer asking about it and they said they had their first one in about 1 hour before I got there and it was delivered about 30 mins after it arrived. They were due for stock this month but due to the pre sale likely won't have anything available ti July. And even then they'll go quickly.

Delivered? Where are you located?

rfkuehn
04-22-2015, 06:16 PM
XC Coupe PHEV. My hands are trembling as I type at the thought of this.

Swagger XC
04-22-2015, 06:19 PM
Delivered? Where are you located?

San Diego


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goVolvo
04-22-2015, 06:28 PM
XC Coupe PHEV. My hands are trembling as I type at the thought of this.

V90 Coupe PHEV, more realistic :)
well, V90CC PHEV should be good enough. :D

goVolvo
04-22-2015, 06:29 PM
San Diego


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So it is not a demo car. Is it a First Edition? //asking for FE people ;)

citivas
04-22-2015, 06:53 PM
Interesting. Here in NJ this afternoon the GM of the Volvo dealer said their demo is stuck waiting at the port in Baltimore because Volvo was waiting on the ships to the West Coast to arrive so both coasts would get their demos at the same time. He also said the FE's haven't shipped from Sweden yet because they were waiting until the entire run was complete before sending them so everyone would get them at approximately the same time.

He said the only cars stateside so far were controlled by Volvo and were making tours of various dealers but not for sale or for existing customers.

GrecianVolvo
04-22-2015, 07:02 PM
I was at my local dealer asking about it and they said they had their first one in about 1 hour before I got there and it was delivered about 30 mins after it arrived. They were due for stock this month but due to the pre sale likely won't have anything available ti July. And even then they'll go quickly.

May I ask who was it that told you that? I find it very interesting.

Thanks.

Swagger XC
04-22-2015, 07:48 PM
A sales guy at SD Volvo. He said it was a first edition that was pre sold online. Also said they would be getting a demo in a week or two.


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Adrian-C30R
04-22-2015, 07:50 PM
A good problem for Volvo to have it seems....

JOHN T SHEA
04-22-2015, 07:50 PM
Sold out into 2016? I was expecting a claim like that, which is nothing to boats about. Waiting lists testify to poor supply, not high damand, and have a habit of vanishing when would-be buyers hear of them and respond by striking the car off their list.

Volvo also need to confirm the 8 year hybrid/battery warranty. They may be tempted to skimp on that in some markets.

GrecianVolvo
04-22-2015, 07:55 PM
A sales guy at SD Volvo. He said it was a first edition that was pre sold online. Also said they would be getting a demo in a week or two.


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No actual car was delivered to a customer...It is true a company car was there on a specific day. It looked like a First Edition but it was not. They will be getting their first demo in the first week of May.

GrecianVolvo
04-22-2015, 07:57 PM
Sold out into 2016? I was expecting a claim like that, which is nothing to boats about. Waiting lists testify to poor supply, not high damand, and have a habit of vanishing when would-be buyers hear of them and respond by striking the car off their list.

Volvo also need to confirm the 8 year hybrid/battery warranty. They may be tempted to skimp on that in some markets.

The battery will be warranted for 10 years or 150,000 miles. That is longer coverage than the federal mandate.

Swagger XC
04-22-2015, 07:57 PM
Interesting, he said it was a customer but I guess not. Nice guy though and otherwise very knowledgeable. I went in excited to see the polestar and left disappointed I missed the xc90.


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Brutus99
04-22-2015, 08:04 PM
The battery will be warranted for 10 years or 150,000 miles. That is longer coverage than the federal mandate.

Wow, that's pretty long! I assume same for Canada?

JOHN T SHEA
04-22-2015, 08:22 PM
Thanks, Grecian Volvo. Hopefully Volvo will offer a similar warranty in Ireland, where I live.

Incidentally, some of Ireland's many high taxes are car purchase taxes of up to 111%! The T8's low NEDC CO2 emissions cut that to about 25%, similar to a number of countries in Europe and elsewhere. Allowing for specs the 225 hp diesel D5 costs MORE than the 400 hp T8 in Ireland, and the T8 saves on other taxes too. Yet Volvo Ireland planned on a take rate of 80% D5 and only 20% T8. The T6 is not offered here as taxes would make it even more expensive than the T8.

tarrbot
04-22-2015, 09:22 PM
Sold out into 2016? I was expecting a claim like that, which is nothing to boats about. Waiting lists testify to poor supply, not high damand, and have a habit of vanishing when would-be buyers hear of them and respond by striking the car off their list.

Volvo also need to confirm the 8 year hybrid/battery warranty. They may be tempted to skimp on that in some markets.

To a some degree this is true about poor supply vs high demand. However, a well-known guitar manufacturer in southern California has been known to have back orders for several years on their guitars. They didn't really up production to meet that demand but just kept cranking them out as usual. They're still in demand. (I have two, by the way).

Another motorcycle manufacturer in Wisconsin had an enormous demand for their products in the early 90s and while they did increase their production, they didn't increase it too much. They're still in demand as well.

Both of these companies understood that if they increased production too much to meet demand that at some point in the near future they would be competing against themselves (via the used market) and put themselves slightly behind in demand and potentially unable to sell as many new products as they currently were.

Volvo may be of the same mindset, here. </speculation>

JOHN T SHEA
04-23-2015, 12:50 AM
To a some degree this is true about poor supply vs high demand. However, a well-known guitar manufacturer in southern California has been known to have back orders for several years on their guitars. They didn't really up production to meet that demand but just kept cranking them out as usual. They're still in demand. (I have two, by the way).

Another motorcycle manufacturer in Wisconsin had an enormous demand for their products in the early 90s and while they did increase their production, they didn't increase it too much. They're still in demand as well.

Both of these companies understood that if they increased production too much to meet demand that at some point in the near future they would be competing against themselves (via the used market) and put themselves slightly behind in demand and potentially unable to sell as many new products as they currently were.

Volvo may be of the same mindset, here. </speculation>

Waiting lists for some artisan luxuries are indeed common. But Morgan and Ferrari are among the very few car-makers to artificially restrict supply, and Morgan are changing that policy. Volvo plan to greatly increase sales, particularly in the USA, where buyers are (rightly!) even less patient than elsewhere. I suspect the problem in Britain and elsewhere is Volvo underestimating how taxes penalize the D5 and T6 versus the T8. Not to mention announcing the Mk 2 XC90 in general, and the T8 in particular, at least six months too early.

volvobuff
04-23-2015, 09:18 AM
He said the only cars stateside so far were controlled by Volvo and were making tours of various dealers but not for sale or for existing customers.

That seems to be the case. The folks at VCNA are driving one up to a dealership in MA today for a special event, and I am very much looking forward to seeing it this afternoon, although I suspect that it will not be available for a test drive. With some luck and given my formidable powers of persuasion, perhaps I will be allowed to sit in the driver's seat for a minute or at least look in through the windows. :)

rfkuehn
04-23-2015, 12:34 PM
V90 Coupe PHEV, more realistic :)
well, V90CC PHEV should be good enough. :D

Well my lower back prefers XC, and my left shoulder & elbow prefer the longer doors on a coupe.

That said, I realize the 1/43 diecast model I recently ordered from the UK may be as close as I get to XC Coupe for a very long time...

JOHN T SHEA
04-23-2015, 11:52 PM
Well my lower back prefers XC, and my left shoulder & elbow prefer the longer doors on a coupe.

That said, I realize the 1/43 diecast model I recently ordered from the UK may be as close as I get to XC Coupe for a very long time...

No problem! Just transfer your consciousness to a 1/43 scale diecast model of yourself. Surely smartphones have an app that can do that by now?