Volvo Cars at the 2014 Los Angeles Auto Show
Volvo Car Group reveals US Revival Plan
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:
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.
Volvo Car Group in 2013
For the 2013 financial year, Volvo Car Group recorded an operating profit of 1,919 MSEK (66 MSEK in 2012). Revenue over the period amounted to 122,245 MSEK (124,547 MSEK), while net income amounted to 960 MSEK (-542 MSEK). Global retail sales for the year amounted to 427,840 (421,951) cars, an increase of 1.4 per cent compared to 2012. The operating profit was the result of cost control and strong sales and was further tangible proof of Volvo Car Group’s progress in implementing its transformation plan. For the full year 2014, the company expects to stay in black figures and predicts to record a global sales increase of close to 10 per cent.
About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 427,000 in 2013 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.
As of December 2013, Volvo Cars had over 23,000 employees worldwide. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium) and Chengdu (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).