Recently, Volvo has taken five models off the market in the U.S., leaving dealers with only four vehicles to sell. At the same time, Volvo has announced plans to introduce an all-new V60 wagon…in Europe. Retailers across the United States say they need the V60, and during the next quarter Volvo will decide whether or not to overturn the decision to not sell the V60 station wagon in the U.S.
As there is nothing new expected from the company in the U.S. for a few years, Volvo is making sure the 2014 models are up to snuff. At the 2013 Geneva Motor Show, Volvo released updated interiors and exteriors for the S60, XC60, S80, and XC70 models. All vehicles are set to go on sale in June of this year.
To get back on track with U.S. sales, Volvo believes these refreshed designs will put them back in the game. Last year, Volvo sales only rose 1 percent to 68,117 units sold, while the rest of the market grew 13 percent. This year, the company plans to see a 5 percent increase in total sales.
With the recent cut of five models, Chip Ott, owner of Fort Washington Volvo in Fort Washington, PA, said in a recent interview, “They have to have a new product offensive. We need to get into the volume business.” The reason these cars have been purged was because they were developed off of Ford platforms. Also, station wagon sales have been on the decline, which is why the V50 and V70 were discontinued.
Overall, the S40, V50, V70, C30, and the C70 have been taken out of Volvo’s lineup. However, the redesigned XC90 that goes on sale in early 2015 is the first new vehicle developed from Zhejiang Geely after acquiring Volvo from Ford in 2010. The XC90 platform will be scalable and the basis of the redesigned S60, S80, and XC60.
In the 2012 J.D. Power and Associates customer service index, Volvo was second to last, and finished last in J.D. Power’s sales satisfaction survey that same year. “We are trying to have a platform for the growth of this brand going forward, and we are trying to improve retailer profitability,” commented John Maloney, CEO of Volvo Cars of North America, in a recent interview.
Source: Automotive News