Volvo Car Group in 2012 New products and developments for future growth
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      Volvo Car Group in 2012 New products and developments for future growth

      • Global sales of 421,951 cars
      • New Volvo V40 successfully launched
      • Sales start of the Volvo V60 Plug-in Hybrid
      • Launch of world first safety innovations
      • Focus on development of a new product architecture and engine family
      • Loan agreement with China Development Bank


      During 2012 - a year of economic recession in global markets and great challenges for the car industry - Volvo Car Group (Volvo Cars) took several strategic steps which will be of high significance to ensure the future success of the company. The company continued to follow the strategy for future growth despite a challenging business environment. New products were introduced in the market, significant investments were made in future vehicle technologies and the company entered strategic partnerships in several areas. Volvo Cars also adapted to the general downturn in the car industry by adjusting its operations in line with customer demand.

      CORPORATE UPDATE

      Retail Sales: 421,951 cars
      Full-year sales for Volvo Cars amounted to 421,951 cars, a deterioration of 6.1 per cent versus 2011. Several markets reported significant improvements, particularly emerging and overseas markets, while the economic situation in mature markets and regions adversely affected consumer demand for new cars. The phase-out of the Volvo C30, S40 and V50 models had a major impact on sales during the year as the new Volvo V40 was launched towards the end of the year and therefore did not reach full effect in affected markets. This factor as well as the economic situation in Europe are the main explanations behind the deterioration in full-year sales.

      The United States was Volvo Cars' largest market in 2012 and for the full year, retail sales reached 68,079 cars, up 1.2 per cent versus 2011. US sales was mainly driven by strong demand for the Volvo S60 and XC60 models while the overall performance was affected by Volvo Cars' strategy to keep incentives at moderate levels. In Sweden, Volvo remained the largest car brand with almost one fifth of the market. Volvo followed the Swedish market development and sales were down 11.3 per cent to 51,832 cars. In China, Volvo performed well with the S60 and XC60 models while the overall performance deteriorated by 10.9 per cent to 41,989 cars, partly explained by the termination of the S40 model. Another factor affecting Volvo sales in China was the fierce competition among the imported luxury brands. The Volvo V60 was introduced in China during 2012 while the new V40 model is due for Chinese launch in 2013 to strengthen the offer.

      2012 First half financials
      Volvo Cars reported a positive operating profit for the first six months of the year - a result of protecting margins, staying prudent and not fully participating in incentive wars in some markets. The company reported an operating profit (EBIT) of 239 MSEK over the first six months of 2012, down from an EBIT of 1,529 MSEK over the same period in 2011. Revenue over the period increased by 3.9 per cent to 65.3 BSEK compared with the first half of 2011 (62.9 BSEK). Volvo Cars' global retail sales for the first half of 2012 amounted to 221,309 cars, down 4.1 per cent versus the same period in 2011 (230,746). The year-end report will be published early May 2013.

      New President and CEO
      On October 19th, the Board of Directors appointed Håkan Samuelsson as new President and CEO of Volvo Cars. He replaced Stefan Jacoby who left the company. Håkan Samuelsson had been a member of the Board for the last two years and brings with him a broad industrial experience.

      Loan agreement with China Development Bank
      Under the intent of a Memorandum of Understanding, Volvo Cars and China Development Bank agreed to evaluate financing of Volvo Cars' business plan. In late 2012, a loan agreement was signed - a testament to China Development Bank's belief in the strength and viability of the Volvo Cars global business plan and corporate strategy. The first step under the agreement is a EUR 922 million loan which is to be used for a refinancing of Volvo Cars' current loans.

      China expansion
      In 2012 Volvo Cars continued to expand its Chinese operations. Volvo Cars' full-fledged business operations in Shanghai include product development, design, purchasing and staff support functions. The expansion of the retailer network and the industrial system goes hand in hand with the recruitments of talented people to add the competence needed. Around 700 people have been recruited during 2012. A new manufacturing plant in Chengdu is the next step and will be a milestone in Volvo Cars' ambitious industrial strategy. This new plant will be up and running in the second half of 2013.

      PRODUCT DEVELOPMENT FOR NEXT-GENERATION VOLVO CARS
      Volvo Cars' future as a strong, independent car maker was reinforced with the announcement of a multi-billion dollar investment in SPA - Scalable Product Architecture and VEA - Volvo Engine Architecture. SPA is a flexible, scalable product architecture that will cover most of Volvo's future car models. With lower costs for development and parts designed to be shared by all models, there will be more capacity left for focusing on individual details that are important to customers. The first car model based on the new architecture is the next-generation Volvo XC90.

      The new engine range VEA will consist solely of four-cylinder engines. Combined with electrification and other spearhead technology, the VEA range will deliver higher performance than today's six-cylinder units, along with lower fuel consumption than today's four-cylinder engines.

      Investments in the manufacturing system
      As part of the significant investments in the new SPA and VEA projects, construction of the new body shop in the Torslanda vehicle plant in Gothenburg, Sweden is ongoing and will be completed during the second half of 2013. In addition, there will also be considerable investments in the Body Components plant in Olofström, Sweden as well as in the Engine plant in Skövde, Sweden. In Belgium, the Ghent plant will also benefit from the SPA investments. The Ghent plant operates at a very high capacity utilisation level with 2012 being its second best year ever in terms of production volumes. Further, the new Volvo V40 models were successfully introduced in this plant during the year. Also the Chengdu plant in China will, when it starts up late 2013, be ready for the upcoming new vehicle architecture. Further, a flexible manufacturing system for the Volvo S60 model has been introduced which means that volumes can be allocated to the Torslanda and Ghent plants depending on capacity situation.

      Volvo XC60 Plug-in Hybrid Concept - a unique blend of gasoline and electric power
      During the Detroit Motor Show in January 2012, Volvo revealed the Volvo XC60 Plug-in Hybrid Concept. It is an electric car, a highly economical hybrid and a powerful high-performance car - all rolled into one. At the touch of a button, the driver decides how the available power from the combination of the high-performance gasoline engine and the electric motor is to be utilized. This world-class gasoline plug-in hybrid technology, featuring a state-of-the-art four-cylinder engine from the upcoming VEA engine family, will reach showrooms in a couple of years.

      Electric car recharging time cut to 1.5 hours
      Volvo Cars started testing a new fast-charger for electric cars that cuts recharging time to an outstanding 1.5 hours - six times faster than today's on-board devices. The fast-charging unit helps cure what is known as 'range anxiety' since the car can be more easily recharged during the day. The new charger has been installed and will be evaluated in a number of Volvo C30 Electric cars. In 2012, Volvo Cars also delivered 15 Volvo C30 Electric cars to the City of Shanghai for pioneering an open road test-drive project. Meanwhile, the Volvo C30 Electric was also awarded "Green Car of the Year" in China at the 4th China New Energy Mobility Summit, in recognition of its world-leading safety and superb performance.

      Strategic partnerships for future vehicle technologies
      Volvo Cars also announced a number of technology partnerships. The company revealed in May that it had chosen electronic equipment supplier Mitsubishi Electric Corporation as partner for the next-generation infotainment system for future Volvo cars. Mitsubishi's world-leading knowledge and experience will bring the infotainment system in future Volvo cars up to a world class level. In the area of automotive internet services, Volvo Cars and Ericsson joined forces to advance the technical development of industry-leading, cloud-based innovations. Volvo Cars also signed a Memorandum of Understanding with the members of the CAR 2 CAR Communication Consortium regarding implementation of shared technology for communication between cars in 2016. Also, further steps were taken in the partnership with Siemens to continue the developments of electrification technologies.

      NEW PRODUCTS

      The new Volvo V40 - a premium hatchback with large car characteristics
      The most significant product announcement of 2012 for Volvo Cars was the launch of the new Volvo V40. This car is ready to overtake the competition in the premium hatchback class with characteristics from larger Volvos wrapped in a sleek, compact package. The car is built in the Ghent plant in Belgium and it is primarily aiming at European markets - a massive 85 percent of the total volume will go to European customers. The success for the new Volvo V40 was confirmed by its place on the shortlist for the European Car of the Year award, where the winner will be announced in March 2013.

      The new car boasts class-leading driving dynamics thanks to a chassis designed for an agile drive and true driving pleasure. The engine range spans everything from Volvo's compact diesel with CO2 emissions of just 94 g/km to the turbocharged T5 petrol engine with 254 hp and acceleration from 0 to 100 km/h in 6.1 seconds. It offers two world first safety systems - the innovative Pedestrian Detection system as well as the groundbreaking Pedestrian Airbag Technology which operates through sensors in the front bumper which registers physical contact between the car and the pedestrian.

      Volvo V40 Cross Country - capable ruggedness and expressive elegance
      In September, during the Paris Motor Show, Volvo Cars revealed the V40 Cross Country, an elegant and refined premium crossover. Around 50 percent of the total volume will go to European customers and approximately 30 per cent to Chinese buyers. This is a capable all-road version of the V40 thanks to a number of unique Cross Country details and a 40mm higher ride than the regular car. The V40 Cross Country also features Hill Descent Control on the T5 version with All Wheel Drive, as well as a practical Hill Hold function that makes starting in a hill easy.

      Volvo V60 Plug-in Hybrid - a world first
      The V60 Plug-in Hybrid reached the first customers in the autumn of 2012 with the first 1,000 'Pure Limited' cars sold out even before they reached the showrooms. Production will increase to 4,000-6,000 cars for model year 2014. The V60 Plug-in Hybrid is the world's first diesel-powered plug-in hybrid, giving owners an electric range of 50 km and fuel consumption as low as 1.8 l/100 km (48 g/km CO2) in hybrid mode. It integrates the best properties from three different car types into an attractive sports wagon - by simply pressing a button you can choose which car you want to drive: A pure electric car, a high-efficiency hybrid or a muscular fun-to-drive car with acceleration from 0 to 100 km/h of just 6.1 seconds.

      Volvo Cars reinforces efficiency leadership with new initiatives in model year 2013
      A range of new CO2 initiatives reinforced Volvo Cars' European leadership in fuel efficiency improvement. The model year 2013 line-up saw the introduction of CO2 emissions below 120 g/km for the majority of all diesel-powered versions of the Volvo S60, V60, V70 and S80. The conventional diesel and petrol power trains continue to play a major role on the environmental agenda and they therefore play an important role in improving the average emission performance. In the recent years Volvo has brought CO2 emissions from diesel and petrol models down significantly and further improvement are under development.

      SAFETY INNOVATIONS

      In 2012 the airbag technology's 25th anniversary was celebrated with the introduction of the groundbreaking pedestrian airbag in the new Volvo V40. This is the first time airbag technology has been used to help protect vulnerable road users, in this case pedestrians, outside the car.

      Autonomous driving - with steering, acceleration and/or braking automatically controlled by a vehicle that requires very little human interaction - is a major focus area in Volvo Cars development work in the safety area. It also serves as important tools in Volvo Cars "Vision 2020" where the aim is that nobody should die or suffer serious injuries in a new Volvo car by the year 2020. These new safety systems will also lead to CO2 emission reductions as well as clear customer benefits in terms of flexibility in monotonous driving situations.

      Road Train premiere on public roads
      The European SARTRE (Safe Road Trains for the Environment) project, in which Volvo Cars is the first and only participating car manufacturer, was successfully completed in 2012. The SARTRE project focused on the attractive possibility of taking the hands off the wheel and the eyes off the road on long motorway trips. The road train offers the best of two worlds - enjoying all the multi-tasking possibilities of public transportation behind the wheel of the customer's own car, while also contributing to lower CO2 emissions and a safer driving environment.

      New Traffic Jam assistance system next steptowards autonomous driving
      Volvo Cars took further steps in the journey towards self-driving vehicles by presenting a new traffic jam assistance system. The new system, whereby the car automatically follows the vehicle in front in slow-moving queues up to 50 km/h, will be ready for production in 2014. This technology makes driving more relaxed in the kind of monotonous queuing that is a less attractive part of daily driving in urban areas. It offers safe, effortless drive in slow traffic.

      Record-breaking safety rating for the new Volvo V40 and top crash test results for S60 and V60
      The new Volvo V40 received the top rating of five stars in the Euro NCAP collision test - the overall result was the best ever recorded by the institute, proving that the all-new Volvo V40 has the same safety level as in larger cars. Volvo Cars' leadership in car safety was also highlighted by the Insurance Institute for Highway Safety (IIHS). Volvo S60 was one out of the two cars that earn the best rating in IIHS's new small offset frontal crash test. No less than five Volvo models - the C30, S60, S80, XC60 and XC90 - have recently earned a Top Safety Pick. The XC60 was also the only SUV crossover with an IIHS Top Safety Pick and an overall 5 star U.S. NCAP rating. Also, the Volvo S60 achieved an overall five star NHTSA crash test rating. In Europe, the Volvo V60 received five stars and was named best car in the Large Family category in the 2011 Euro NCAP rating. The Volvo V60 Plug-in Hybrid scored five stars in Euro NCAP and the highest number of points ever for an electrified car.

      VOLVO OCEAN RACE
      The 2011-2012 edition of the Volvo Ocean Race took off from Alicante, Spain and after eight stopovers and 39,000 nautical miles around the world, the French Groupama team was the first to reach the goal in Galway, Ireland having battled against five other teams in the closest race ever. The next race has already been announced, due to start in 2014. Tradition continues also when Volvo Cars' Special Vehicles Division launches a specially designed model range with a sail racing theme - the new Volvo Ocean Race edition.

      2012 IN FIGURES


      2013 OUTLOOK
      Competition in the car industry will most likely continue to be as fierce as in 2012 as manufacturers will seek to capture volumes and market shares in a market where the economic situation will remain unstable. 2013 is therefore expected to be a challenging year in terms of margins and growth.

      For Volvo Cars, 2013 will be one of the most intense years in the company's history. Including the new Volvo V40 versions launched in 2012, Volvo Cars is renewing more or less the whole model range. The developments of the new product architecture and engine family will be further intensified and a range of new engines will reach the market in 2013. In China, the opening of the Chengdu plant in 2013 will be a milestone and a major step in the growth strategy.
      2016 V60CC Platinum
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      Previous:
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    3. #2
      Junior Member benbow's Avatar
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      The surprise for me was that 13,848 Volvos were sold in Japan last year. Japan is a very tough market for any foreign automaker.

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      Quote Originally Posted by benbow View Post
      The surprise for me was that 13,848 Volvos were sold in Japan last year. Japan is a very tough market for any foreign automaker.
      I travel to Tokyo a lot, and the main foreign cars I see are Volvos, BMWs, MBs, and Audis--and Volvo usually wins my unscientific and haphazard counting of these cars. Of course, the Japanese overwhelmingly buy Japanese cars.

      And the fifth best selling Volvo car - out of 14 models - is the iconic XC90!
      Last edited by Tostik; 01-12-2013 at 06:47 PM.
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      A bigger suprise is that the US is the biggest market. Volvo continues to market SUV type models like th xc60 and 90 and is nottrying to expand this matket with its newer models. I've owned Volvos since 1980 and drive a 99 c70 and 03 xc70. What is available to buy right now won't get me out of these two cars any time soon.

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      Volvo Car Group in 2012 New products and developments for future growth

      Volvo Duck, XC60 is a great vehicle. I guess you may be concerned what others will think if you drive an SUV, but IMHO the XC60 is basically a current generation Vista Cruiser with excellent handling and decent mpg. There may be a plug-in option available shortly
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      Global Moderator V70 Brad's Avatar
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      Quote Originally Posted by kevinG View Post
      Volvo Duck, XC60 is a great vehicle. I guess you may be concerned what others will think if you drive an SUV, but IMHO the XC60 is basically a current generation Vista Cruiser with excellent handling and decent mpg. There may be a plug-in option available shortly
      I'm reluctant to go the XC 60 and 90 route myself. As previously mentioned, I have a Newfoundland dog weighing in excess of 100 pounds. I don't want to be lifting it into the back of a SUV when its too old to get there by itself.
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      If I'm reading this right, then the only car we can expect in US/Canada for 2013 might be a 4 cylinder XC90 built in Chengdu, China?

      I'm speechless, and not in a good way.

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      Quote Originally Posted by Mandraxe View Post
      If I'm reading this right, then the only car we can expect in US/Canada for 2013 might be a 4 cylinder XC90 built in Chengdu, China?

      I'm speechless, and not in a good way.
      For the last time: Volvos built in China will only be sold in-wait for it- CHINA! The US and EU are still getting the Swedish and Belgian built Volvos like always. And besides, none of us know how much better the new XC90 will be built, do we?
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      I'de be curious to see canadian sales numbers. I see a lot of S60s and XC60s on the road. Volvo always had a respectable following in Eastern and Central Canada.
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      I can't speak for UK sales figures other than what I see on the roads - the S40, V50. V70, XC60 and XC90 are very popular; not so many S60 models or the new V60 though.

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      US bound models????

      I guess I don't understand how a corporation neglects its largest market. I read the post and take away the following: S60 and XC60 are the primary US vehicles for Volvo. Soon the new XC90 will be available and jump high on the sales list assuming it is done as well as the first XC90. But what about the other model gaps. The S40/V50/C30 are all gone and the S80 is extremely long in the tooth. How did corporate planning not have new models ready to fill the gaps and better yet, why didn't they update the older platforms and keep them in the lineup so dealers have something to sell and corporate could generate some cash flow.

      With that said, why isn't the XC40 model variants finding their way to the US. All the European car companies are looking to the small crossover market so it seems simple to sell the XC40 in the US. I was looking to replace the Mrs. minivan and instead of seeing a vehicle like the XC40 in the showroom I went to Honda and bought her a CRV. Granted, not the same type of vehicle in my personal opinion but I would have liked something smaller than the XC60 (and lower price) as a choice.

      As good as the S60 and the XC60 are, they are too small when compared against most mid-sized sedans (Camry. Accord) and crossovers. Volvo needs to have fresh models slotted above and below in size and pricing if they have any chance of customers staying in the showrooms. I'd love to read the reason for this some day. Since these cars take years to reach the showroom, I can only assume it had to do with the Ford-Geely sale postponing future plans.

      I hope the US model lineup gets sorted out quickly or Volvo could lose loyal customers to other brands.
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      Quote Originally Posted by m491 View Post
      I guess I don't understand how a corporation neglects its largest market. I read the post and take away the following: S60 and XC60 are the primary US vehicles for Volvo. How did corporate planning not have new models ready to fill the gaps and better yet, why didn't they update the older platforms and keep them in the lineup so dealers have something to sell and corporate could generate some cash flow.

      With that said, why isn't the XC40 model variants finding their way to the US. All the European car companies are looking to the small crossover market so it seems simple to sell the XC40 in the US. I was looking to replace the Mrs. minivan and instead of seeing a vehicle like the XC40 in the showroom I went to Honda and bought her a CRV. Granted, not the same type of vehicle in my personal opinion but I would have liked something smaller than the XC60 (and lower price) as a choice.

      I hope the US model lineup gets sorted out quickly or Volvo could lose loyal customers to other brands.
      Thing is, Volvo are slowly regrouping after Ford's ownership. The corporate planning you speak of is clearly apparent with Ford's restriction on what Volvo could offer in the U.S after the split. The problem also occured with the Mazda 2 and 3 since the company pulled away from Ford. Mazda are restricted with updating their 2 series because it uses the Fiesta floor pan and the 3, based on the Focus. Whilst Ford was losing money at the time, the divorce between Volvo and Ford hasn't been exactly rosy. Yes, whilst the U.S is the largest market for Volvo, the company clearly couldn't release all the products that were developed "at the time" under Ford ownership. One reason alone to why Mazda have been forced to merge with Fiat on their upcoming MX-5 replacement, rather than use a stock Ford platform.

      I think the new V40 Cross Country is an easier approach to developing a higher riding XC40 model in the shape of the XC90. Volvo are trying to be more fuel efficient, sticking to the 4 cylinder engine routine. Having thought about it for a while, the new V40 CC is a good compromise between the larger XC60 (which has more room than the current Nissan X Trail in Europe) and much more car-like to drive IMHE. Then there's the XC90 which as you know is about to be replaced. I don't think Volvo need a 3 tier range of high riding SUV's, frankly. I think they have enough with the XC60 and XC90 alone. The V40 CC is the much softer approach. in a more car like, compact design; Volvo did offer soft Haldex derived V50 wagons but as I found out, were not released in every market and special forces such as the MOD and police in the UK have 4x4 "soft" V50's and S40's.

      I agree that the current S60/V60 is too small for the market, (I also think its too small for the UK market) but there's nothing stopping Volvo from doing a grand long version. If VW can do it with their Passat models, I don't see why Volvo can't offer a longer stretched version of the S60 for head to head mid sized sedans. Leave the original to take the place of the S40, or offer a slight restyle. Darn sight cheaper than spending the extra on a totally new car. Leave the luxury market alone for the new S100/V100.

      Either way, as a company Volvo are still getting back on their feet, but it can't be easy for them with the restriction on practices that Ford outlined when they owned Volvo. I eventually bought my wife a Kia medium sized hatch back after growing impatient for the new V40 to arrive. We haven't really looked back even though the V40 looks super cool, the prices in the UK are pretty expensive for what's on offer. We also looked at the Kia Sportage as it seemed to have everything she wanted. The change to Kia has been good in so far as a long warranty car that doesn't give her problems. I still love my S60 D5 though; much prefer the older shoulder lines to the current shape.
      Last edited by fd_uk; 01-22-2013 at 09:51 AM.

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      Given the budget restrictions towards the end of Ford ownership, Volvo had to cancel the developent of the then called XC30. I have heard from Volvo people that the V30 (now called V40) programme started in 2006. However, Ford were not keen on the 5 door hatch re it competing with the Ford Focus. A similar glass ceiling due to Jaguar ended the collaboration with Nilsson for LWB Volvos in 2000. The R lineup replacement also wasnt approved due to the Jaguar ceiling. Volvo has effectively got round that from a performance point of view in all but name with the S60 T6 R-design Polestar. Towards the end of Ford ownership some things were permitted as Ford was less involved or they allowed knowing the sale was coming (Peter Hobury was given back, SPA and VEA programmes launched but Volvo started these as contingency plans anyway in 2008).

      The V40 product was frozen or hanging around. It started up again in the waning days of Ford as Volvo was soon to be sold. Jacoby also switched the launch schedule for the XC90 and V40 seeing that the V40 takes on new markets and the existing XC90 still sells well. The XC30 (we'd call it XC40 given the new 40 monika for smaller cars) was cancelled unfortunately. The V40 XC tries to capture some of that market. With the new VEA engines, expect wider availability of AWD too. From Samuelson's Detroit interview, the XC40 is now back on again, presumably on the P1/C1 MCA platform as originally planned. The small SUV market isnt one to overlook.

      Whilst I need to check the figures posted by some people earlier, the S60 and V60 are slightly larger than the S40/V50 and smaller than the A4, 3-series and C-class. The S80 is 5 series, E-class and Passat.

      Indeed, room for a larger vehicle. In fact, an S60L is planned for the Chinese market. I say, call it S70 and launch it worldwide!

      A new S40 is also on the way.

      The new S80 will grow in size (further widening the gap to the S60). Fd-uk is right, a LWB S60 is a quick fix and cheaper way to fll the gap = S70.

      A new C30 is needed, new C70. Volvo have said in interviews a new larger coupe is on the way as well as an SPA car. Presumably capturing the original C70 market, bit larger and available as a fixed head coupe and a cabriolet. Still room for a small C70 there I think.

      The new small car 'P20' project should get the go ahead. But a new small platform is needed for the P20, C30. Next C70 is P1/C1 MPA based and due end of 2013.

      It seemed obvious before but the small platform partner will be Geely

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      This is infruriating!

      Read the interview with John Maloney here

      http://rumors.automobilemag.com/detr...#axzz2IjXzLKUn

      Wants to target BMW and Mercedes

      Means C30, C70, S40, V50, V40 "less prestigious models were no longer part of the plan

      Ok S40 and V50 reached the end of production as launched in 2003. S60 V60 generally replaces them especially in the US as you didnt get small engined versions! In Europe there's a clear gap for a new S40. V40 fills new niche and smallest estate = V60.

      C30 production has ended 6 months early in Dec 2012. New small product needed desperately as C30 is a much smaller product than the V40. Doug Speck says Volvo needs a new C30 (see http://www.am-online.com/news/2013/1...estment/32214/). Samuelson says there wont be a car smaller than the V40 - there needs to be!! If you are going to dabble in anew segment, STAY THERE! Replace the C30. The hardest part of the C70 and R brand launch was done in '99for the X70 range and '95 for the 850 respectively. Stick with a coupe!

      http://www.youtube.com/watch?v=siO6ymnYtLk



      I DO NOT buy this BMW and Merc challenging plan without the V40, C30, new S40 and C70!!!

      Hello! BMW has the 1 series in the US (plus 3 series re C70) and Merc is launching the new A class. Maybe you will get the B class as well. That hits the spot of Volvo's City Concept car (in the museum).

      Refusal to launch diesels.

      V40 was never designed for the US - Stupid!

      Volvo has only one small car at the moment, the V40. That needs to go Stateside. XC40 ASAP. US needs to keep the C70 (get the new one in MY14).

      Samuelson suggests you get the V60 which should help

      Challenging BMW and Merc means competing in all segments! Not cutting the lineup

    17. #15
      Member rfkuehn's Avatar
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      Quote Originally Posted by VolvoGoteborg View Post
      This is infruriating!

      Read the interview with John Maloney here

      http://rumors.automobilemag.com/detr...#axzz2IjXzLKUn
      Various reactions:

      1. OMG.

      2. Well, he really can't admit that his current ownership got owned by his prior ownership. So its all part of 'The Plan'.

      3. Ford needed to net another $4B or so from Volvo, restricting their competitiveness was an alternative to cash.

      4. Ford actually killed Volvo in 1999, but we're just learning of this now (though others were suspicious much earlier on).

      I have a healthly dose of Swedish in my genes that's getting increasingly pissed off. That said, can't blame Ford for having a greater appreciation of what they weren't giving Geely than Geely's appreciation of what they weren't getting from Ford.

    18. #16
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      Quote Originally Posted by VolvoGoteborg View Post
      This is infruriating!

      Read the interview with John Maloney here

      http://rumors.automobilemag.com/detr...#axzz2IjXzLKUn

      Wants to target BMW and Mercedes

      Means C30, C70, S40, V50, V40 "less prestigious models were no longer part of the plan

      Ok S40 and V50 reached the end of production as launched in 2003. S60 V60 generally replaces them especially in the US as you didnt get small engined versions! In Europe there's a clear gap for a new S40. V40 fills new niche and smallest estate = V60.

      C30 production has ended 6 months early in Dec 2012. New small product needed desperately as C30 is a much smaller product than the V40. Doug Speck says Volvo needs a new C30 (see http://www.am-online.com/news/2013/1...estment/32214/). Samuelson says there wont be a car smaller than the V40 - there needs to be!! If you are going to dabble in anew segment, STAY THERE! Replace the C30. The hardest part of the C70 and R brand launch was done in '99for the X70 range and '95 for the 850 respectively. Stick with a coupe!

      http://www.youtube.com/watch?v=siO6ymnYtLk



      I DO NOT buy this BMW and Merc challenging plan without the V40, C30, new S40 and C70!!!

      Hello! BMW has the 1 series in the US (plus 3 series re C70) and Merc is launching the new A class. Maybe you will get the B class as well. That hits the spot of Volvo's City Concept car (in the museum).

      Refusal to launch diesels.

      V40 was never designed for the US - Stupid!

      Volvo has only one small car at the moment, the V40. That needs to go Stateside. XC40 ASAP. US needs to keep the C70 (get the new one in MY14).

      Samuelson suggests you get the V60 which should help

      Challenging BMW and Merc means competing in all segments! Not cutting the lineup
      He should be called John Moroney.... can't expect people to be that dumb to believe what he said about the V40 and competing with the Germans. Plain and simple, a moron who thinks he can fool others when his product portfolio says otherwise.

    19. #17
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      After 4 Volvo purchases, My next vehicle for general use needs to be a plug in hybrid.
      There simply is no way around it.
      It's obvious that Volvo is selling the US market what Volvo wants to sell it, rather than what the market wants. No Diesel, no plug in, no small wagon.
      Competing with BMW and MB is kind of like whose is bigger. For German Autobahn and German drivers, the BMW, MB and Audi make sense. For Swedish and US roads, they are over kill. Not all of us want a 155mph speed limited vehicle, some want safe, reliable transportation.
      I wonder how VW with the Jetta wagon/diesel and Audi with the new All Road stay in business? These are both small wagons, albeit not plug ins.
      An All Road specs out at $42K (fast but lousy milage) for me and the VW Jetta Diesel Wagon at about $27K, Unfortuneatly, no AWD.-Dick
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      Quote Originally Posted by budrichard View Post
      After 4 Volvo purchases, My next vehicle for general use needs to be a plug in hybrid.
      There simply is no way around it.
      It's obvious that Volvo is selling the US market what Volvo wants to sell it, rather than what the market wants. No Diesel, no plug in, no small wagon.
      Competing with BMW and MB is kind of like whose is bigger. For German Autobahn and German drivers, the BMW, MB and Audi make sense. For Swedish and US roads, they are over kill. Not all of us want a 155mph speed limited vehicle, some want safe, reliable transportation.
      I wonder how VW with the Jetta wagon/diesel and Audi with the new All Road stay in business? These are both small wagons, albeit not plug ins.
      An All Road specs out at $42K (fast but lousy milage) for me and the VW Jetta Diesel Wagon at about $27K, Unfortuneatly, no AWD.-Dick
      They're driving away prospective buyers who want a small wagon or a 5 door hatchback too. I think they need to fire a bunch of people including John Moroney who thinks he can fool people with bs. They have to listen to feedback from customers, they're the ones keeping them in business.

    21. #19
      Global Moderator GrecianVolvo's Avatar
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      SkyKid,

      Your manners leave a lot to be desired...
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    22. #20
      Member rfkuehn's Avatar
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      Quote Originally Posted by VolvoGoteborg View Post
      Given the budget restrictions towards the end of Ford ownership, Volvo had to cancel the developent of the then called XC30.

      The XC30 (we'd call it XC40 given the new 40 monika for smaller cars) was cancelled unfortunately. The V40 XC tries to capture some of that market. With the new VEA engines, expect wider availability of AWD too. From Samuelson's Detroit interview, the XC40 is now back on again, presumably on the P1/C1 MCA platform as originally planned. The small SUV market isnt one to overlook.

      It seemed obvious before but the small platform partner will be Geely.
      Given the recent comments from Samuelson, I wonder if Volvo wasn't taking a shot at Mazda as a small-car partner. XC40 wouldn't necessarily compete with CX-5, at least not directly. And Mazda seems to have done OK (not great) post-Ford persecution (ownership). Probably many, many reasons why such a deal wouldn't work out.

      If Volvo retained rights to develop new vehicles on C1 MCA, why the massive delays in getting XC40 back underway? Should have been obvious years ago (ahem, MKC) that this was a market to target.

      Did Volvo really (further) delay next XC90 to move up V40? V40 is fine, but I think next XC90 would have had much broader impact for Volvo - including NA.

      So many, many things just don't make sense...

    23. #21
      Global Moderator GrecianVolvo's Avatar
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      No delay with the XC90. Actually, the project was advanced over another model.
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    24. #22
      As many have probably said before, it is a shame Volvo can't sell the V60 here in the States, but here's an idea. How about offering it only thru OSD? Heck, it's really just a wagonized S60 so what sort of costs are there to bring a variant? It could have the same engine family to pass emmissions regulations, should equal or even exceed the crash regulations, etc.

      That way, no excess inventory (if it is true that wagons truely are poor sellers here), yet Volvo's core audience (that helped build their reputation) who don't want SUV's and crossovers have something to buy again. Lastly, it might even boost the OSD program for them and get new customers in the door who never knew such a thing existed.

      Just a thought. Carry on

      P.S. I currently own and love my '12 XC60 T-6 but if I had the opportunity to buy a V60 I would have in a heartbeat. I was also a former 2-time Subie Wagon owner before my XC.
      Last edited by VolvoNewbieScott; 01-24-2013 at 03:32 PM.

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      I'll defer to Yaanis' superior knowledge and it's interesting that the XC90 has been prioritised over another model. I have a suspicion what that other model is. However, there were interviews with Stefan Jacoby during and just after the V40 launch where he said he promoted the V40 launch over the XC90.

      Given the long gestation of the XC90 it does look like those reports of the original XC90 replacement being scrapped or considerably redesigned to incorporate the plug in hybrid architecture designed (V70 prototypes before the V60 launch) developed after the XC90 programme was already quite progressed. Thus, the 2014 launch date and the extension of the Mk1 XC90 till that time.

    26. #24
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      Quote Originally Posted by GrecianVolvo View Post
      No delay with the XC90. Actually, the project was advanced over another model.
      Just making up some dates here... XC90 P2 was booked for MY 2003-2009. XC90 P3 would have followed 2010-2016. So XC90 SPA would have arrived for MY2017. Ford canx the P3, so XC90 SPA was accelerated a couple of years to make it the first SPA product. And the XC90 P2 continues for what will be 12 production years. Wow.

      Meanwhile, any tips on how to get Kids Globe toys shipped to USA? They've not replied to my email...

      http://www.minivolvo.lu/7/post/2013/...kidsglobe.html

      The children enjoy toys that look like dad's car. (And so does dad.) Too young to play with die cast.

    27. #25
      Global Moderator GrecianVolvo's Avatar
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      Quote Originally Posted by VolvoGoteborg View Post
      I'll defer to Yaanis' superior knowledge and it's interesting that the XC90 has been prioritised over another model. I have a suspicion what that other model is. However, there were interviews with Stefan Jacoby during and just after the V40 launch where he said he promoted the V40 launch over the XC90.
      It was easier to "prioritize" the launch of the new V40 since the car is built upon a current platform. The next generation XC90, as you know, will be on an entirely new platform.

      VolvoNewbieScott, I will paraphrase Bil Keane: "yesterday is history, tomorrow is a mystery..."
      Last edited by GrecianVolvo; 01-24-2013 at 09:56 PM.
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    28. #26
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      Re: Volvo Car Group in 2012 New products and developments for future growth

      Wow, I've been following a lot of the discussions on the topic and I can say that I've observed a significant rise in the frustration of the limited line up offering in the US from participants of different model interest.

      But first of all I must say thanks to Chris for this great update on Volvo state of affairs. This has been the most useful and efficient summary I've read so far.

      I also must say I'm a bit tired of hearing about the Ford excuse. Yes Ford was in the picture and yes they didn't make things easy for volvo as they tried to sale volvo. But it is too easy to blame Ford for everything...

      Personally what frustrates me the most is the lack of business creativity in the US market matter.
      Volvo sales of their small models,wagons, or hatch models were all declining, no denying. It is also true that the current majority of the US demographics are swamped of SUV buyers and many cars have grown in size.

      I suspect however that this trend (and yes it is just a trend) is approaching it's climax. I think the young generation I'm observing on a daily basis is about to change that significantly. For what else I cannot say but I get the feel it will be for more compact and versatile vehicle that speaks more life style freedom than large SUVs on a grocery store parking lots.

      The point is that when you struggle from a difficult situation such as what VNA is going through the worst you can do after keeping all your models with declining sales, is to get rid of them completely! That's what you call black and white mindset.
      Volvo is missing big time on an alternative that would have been a smarter approach in the US. They should have consolidated those declining offers by more aggressive refresh just for the time being until recovery.

      Many other brands have done so extremely successfully. It may cost you a little but it is better than loosing what I thought was a growing segment of new blood fans...

      Time will tell but I continue to think all the lineup cuts was a big giant regrettable mistake no matter the excuses.

      I'm trying to consider the current volvo offering but my next car is not likely to be a volvo regrettably as I was truly and sincerely growing fond of the brand.

      I can only wonder if someone at Volvo NA is following all these discussions here on SS and would be bold enough to act...
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    29. #27
      Moderator R Salesman's Avatar
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      Quote Originally Posted by SkyKiD View Post
      They're driving away prospective buyers who want a small wagon or a 5 door hatchback too . . . . They have to listen to feedback from customers, they're the ones keeping them in business.
      I couldn't agree more. I just bought two brand-new 2013 VW Jetta Sportwagens because Volvo doesn't sell sport wagons any more. After reluctantly moving to VW from Volvo, I can say I couldn't be happier. My car handles way better than a V50, gets significantly better gas mileage (I average 42 mpg combined) than any Volvo, the infotainment system is decades ahead of any Volvo offering, and it's got a manual transmission to boot!

      The sad thing is that I never would have even considered a brand other than Volvo if they had continued to sell a manual transmission wagon. I'm sad that I'm no longer in a Volvo, but I'm ecstatic that I've found a car company that 1) actually listens to its customers, and 2) builds cars that their customers want. Strange business concept, I know . . .
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    30. #28
      Junior Member ChrisInSD's Avatar
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      Quote Originally Posted by R Salesman View Post
      The sad thing is that I never would have even considered a brand other than Volvo if they had continued to sell a manual transmission wagon.
      Let's get real here--the market for manual transmission station wagons in the United States is not a large car category. And certainly not a category an automaker with .5% of the market should be wasting its time and very limited $ with. My opinion.

      Of course, I share the frustration. It is disheartening to see model after model get canned with no replacement and see the brand we all got excited about at some point in our lives sell 2 cars, 2 SUVs (one as old as the hills), and a single wagon (MY14). As a fellow 2013 car buyer the V40 fit our wish list to a T. We settled on the C30, which I think is a sweet car in its own right, but the smaller size was a compromise that it seems silly we had to make. We would have paid you more $ Volvo for that V40 if you'd have just given us the chance to do so!
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    31. #29
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      Quote Originally Posted by TG View Post
      I suspect however that this trend (and yes it is just a trend) is approaching it's climax. I think the young generation I'm observing on a daily basis is about to change that significantly. For what else I cannot say but I get the feel it will be for more compact and versatile vehicle that speaks more life style freedom than large SUVs on a grocery store parking lots.

      The point is that when you struggle from a difficult situation such as what VNA is going through the worst you can do after keeping all your models with declining sales, is to get rid of them completely! That's what you call black and white mindset.
      Volvo is missing big time on an alternative that would have been a smarter approach in the US. They should have consolidated those declining offers by more aggressive refresh just for the time being until recovery.

      Many other brands have done so extremely successfully. It may cost you a little but it is better than loosing what I thought was a growing segment of new blood fans...

      Time will tell but I continue to think all the lineup cuts was a big giant regrettable mistake no matter the excuses.
      On your first point--completely agree. There will be a trend away from SUVs to well designed more efficient cars (perhaps something like, oh, the Volvo V40??) for at least a good portion of the market. The popularity of these types of vehicles right now is undeniable.

      Well not much more to say but this

      http://www.youtube.com/watch?v=IZVtI-ku2wY
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      Moderator R Salesman's Avatar
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      Quote Originally Posted by ChrisInSD View Post
      Let's get real here--the market for manual transmission station wagons in the United States is not a large car category. And certainly not a category an automaker with .5% of the market should be wasting its time and very limited $ with. My opinion.
      Oh, I'm very much real. VW's Golf/GTI (which is in the same category as the V40) sells over 50% manuals in the US -- so the market for a sporty, versatile, manual-transmission-equipped 5-seater exists, and is quite strong. Volvo has already produced a car that could compete, but they won't import it to the US. I'm glad the C30 works for you -- but it can't for me. It's only a two-door four-seater. I'd have to give one of my kids up for adoption.

      You can't make money on cars you don't sell, and you can't sell cars if you don't offer them for sale. You can't increase market share by offering fewer products, and you can't increase profitability by offering fewer products, with fewer features, than the competition. We're talking economics 101, and Volvo is failing miserably.
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    33. #31
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      ^+1

      If only they'd listen to their customers. Too bad they failed their GE econ class in college and forgot to listen in their history class.

      Sucks that one has to go so low to call out the brain washing.

    34. #32
      Junior Member mjbr24's Avatar
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      Quote Originally Posted by R Salesman View Post
      Oh, I'm very much real. VW's Golf/GTI (which is in the same category as the V40) sells over 50% manuals in the US -- so the market for a sporty, versatile, manual-transmission-equipped 5-seater exists, and is quite strong. Volvo has already produced a car that could compete, but they won't import it to the US. I'm glad the C30 works for you -- but it can't for me. It's only a two-door four-seater. I'd have to give one of my kids up for adoption.

      You can't make money on cars you don't sell, and you can't sell cars if you don't offer them for sale. You can't increase market share by offering fewer products, and you can't increase profitability by offering fewer products, with fewer features, than the competition. We're talking economics 101, and Volvo is failing miserably.
      Volvo just can't afford to do this and VW can. I lurk here and read all of the frustration and see Volvo compared to BMW, MB, Audi (VW). Volvo as an organization does not have the resources right now to do what these other brands do. It's just that simple. It may take them a decade to resolve this, and maybe one day they will catch up to Audi who they routinely outsold in the US just a few years ago. Until then, you must make do with what they have or move on to another brand, as you have done. It's catch 22, selling 68,000 cars in the US is nothing, but not having the product offerings means lost sales. There is hope, there once was a point where BMW sold about 40,000 cars in the US and there was talk of them pulling up stakes. Look at how far they have come.

    35. #33
      Global Moderator GrecianVolvo's Avatar
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      Quote Originally Posted by mjbr24 View Post
      Volvo just can't afford to do this and VW can. I lurk here and read all of the frustration and see Volvo compared to BMW, MB, Audi (VW). Volvo as an organization does not have the resources right now to do what these other brands do. It's just that simple. It may take them a decade to resolve this, and maybe one day they will catch up to Audi who they routinely outsold in the US just a few years ago. Until then, you must make do with what they have or move on to another brand, as you have done. It's catch 22, selling 68,000 cars in the US is nothing, but not having the product offerings means lost sales. There is hope, there once was a point where BMW sold about 40,000 cars in the US and there was talk of them pulling up stakes. Look at how far they have come.
      You stole the words right out of my fingertips.
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    36. #34
      Junior Member ChrisInSD's Avatar
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      Quote Originally Posted by SkyKiD View Post

      Sucks that one has to go so low to call out the brain washing.
      Give me a break...someone who holds a different opinion than you do is not brain-washed.
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    37. #35
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      Quote Originally Posted by mjbr24 View Post
      Volvo just can't afford to do this and VW can. I lurk here and read all of the frustration and see Volvo compared to BMW, MB, Audi (VW). Volvo as an organization does not have the resources right now to do what these other brands do. It's just that simple. It may take them a decade to resolve this, and maybe one day they will catch up to Audi who they routinely outsold in the US just a few years ago. Until then, you must make do with what they have or move on to another brand, as you have done. It's catch 22, selling 68,000 cars in the US is nothing, but not having the product offerings means lost sales. There is hope, there once was a point where BMW sold about 40,000 cars in the US and there was talk of them pulling up stakes. Look at how far they have come.
      Excellent post. Tiny little Volvo often bests the German giants in many ways, IMO. An it's not just my opinion--I've read a lot reviews, both expert and owner, that will give a comparison to Volvo over Audi, BMW, and Mercedes, at least by a little. It just depends on what you want or need. Volvo still has 'niche' superiorities.
      Last edited by Tostik; 01-26-2013 at 04:41 PM.
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