- Complete renewal of entire model range in five years
- Targets sales of over 100,000 in the medium term
- Volvo CEO: “We will not only stay in the US, we will prosper”
Volvo Cars today revealed full details of its plan to revive sales in the US, which will be led by a complete renewal of its entire product range in the next five years, a renewed focus on its dealer network, world first engine and safety technologies, a new management team and increased marketing spending.
The announcement of the plan comes at the LA Auto Show, where Volvo will introduce the all-new XC90 seven seater SUV to the US and also reveal the new V60 Cross Country wagon.
The Swedish company is confident that it can reverse a 10-year trend of falling sales in the US to sell around 100,000 cars a year in the medium term, compared to around 60,000 forecast sales this year. This will bring the company’s performance in the US into line with the strong sales growth it has generated in Western Europe and 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.”
Volvo’s US Revival Plan has five elements. They are:
- The complete renewal of the product range in the next five years which begins with the all-new XC90 and V60 Cross Country
- A full scale strengthening of the brand with a marketing budget set to double in the next year
- A focus on developing the dealer network to ensure the infrastructure is in place to support brand development and new products
- A focus on managing residual values to ensure that the company’s premium position is reflected in the long term value of its products
- A drive to improve service operations and deliver real profit opportunities to the dealer network as well as an uncompromising approach to service quality
This revival plan will be implemented by a new management team, which is already in place. It will also be underpinned by several new technologies. These include Drive-E, the most powerful and environmentally friendly engines on the market, world beating safety technologies and the latest connectivity capabilities.
The all new XC90 in LA
The US public is being offered its first look at the all new XC90 at the LA Auto Show.
The XC90 is a visually striking, premium quality seven seat SUV with world leading safety features, new powertrain technologies, an unrivalled combination of power and fuel efficiency and a superlative interior finish.
The new XC90 marks the beginning of a new chapter in Volvo’s history, capturing its future design direction, incorporating its own range of new technologies and utilising its new Scalable Product Architecture (SPA) technology.
The First Edition of the all-new Volvo XC90, 1,927 individually numbered cars only available for sale via digital commerce, sold out in 47 hours after it was released in early September 2014.
Please see our separate press release for full details.
World premiere in Los Angeles: the Volvo V60 Cross Country
In Los Angeles, Volvo Cars also showcases the long-awaited Cross Country version of its successful V60 sports wagon.
Compared to the regular V60, the V60 Cross Country has an increased ground clearance of 65 mm. Furthermore, offering new Cross Country 18” and 19” wheels, the V60 Cross Country comes with high profile tyres, adding comfort and off-road aesthetics, reducing road noise and providing added wheel protection whether climbing kerbs or negotiating rocky roads.
The US and Canada will get the first V60 Cross Country cars, and they will launch with Volvo’s iconic five cylinder 250 hp petrol engine with All-Wheel Drive coupled to an automatic transmission delivering a highly competitive 23 mpg.
Volvo’s new class-leading Drive-E four-cylinder petrol engines, which will be available in the V60 Cross Country globally in early 2015, will be the base for the Front-Wheel Drive variant, while the proven five-cylinder D4 powertrain will provide the power for the All-Wheel Drive variant.
The Cross Country brand has a long and distinguished heritage. Volvo Cars was the first premium brand to offer increased all-road capability and styling on its wagons as far back as 1997 when it introduced the V70 Cross Country, creating a whole new type of car experience that has since captured the imagination of the motoring public.
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