Report: Volvo considering cheaper cars, higher volumes

Posted Wed Aug 13 2008 11:33 AM by Siddharth Raja

Volvo executives have stated as recently as last month that the carmaker is looking to position its future vehicles further upmarket and into segments dominated by the likes of Germany’s luxury marques. This was to help Ford, which still owns the Swedish carmaker, to keep a foot in the door to the luxury market now that it has sold off the rest of its former Premier Auto Group. However, latest reports indicate that such a strategy is proving too expensive and a better solution would be to focus on less expensive models and higher volumes.

Volvo’s original decision to develop the XC60 SUV (pictured) from the ground up proved to be too costly and led to significant delays in its development. A future strategy, an inside source has revealed to Autocar, would be to utilize existing Ford technology and platforms to keep costs and development times low.

There are also plans for the introduction of new fuel-efficient diesel models as well as the addition of more small cars in its lineup.

The radical changes are part of Ford’s plans to turnaround Volvo’s dire financial situation and boost its production levels almost 50%. While many have suggested that Ford is looking to spruce up the company ahead of a potential sale, officials have continued to deny the rumors. One of the key reasons is that Ford is unwilling to trade Volvo’s technology, namely its advanced safety features, to rival carmakers.

Reader Comments

Wed Aug 13 2008 12:40 PM
Michael D. says

I hope this doesn't jeapordize the great top-end models such as the S80 and XC90 - I don't want to see something like Volvo humble and go downhill.

If those offerings stay, and models below those are added in addition to, than I have no problem with that. If Ford hardware has to be utilized, that all well and good, too; Ford makes use of Volvo's D3 platform for the Taurus (soon for a significant redesign), Flax, MKS, and upcoming Lincoln MKT.
Wed Aug 13 2008 2:03 PM
bambam says

Yeah I wanted Jaguar to stay up with the other top end brands but that was a bit too late.
This move would be much easier to win for Volvo, it can easily take out those simple Jeeps or Honda's CRV. Both way need serious work.Consumers ain't really after luxury high gasoline cars and they probably laugh there heads off if you say i could of bought a Xc90 for the price of a Honda or a s40 for a corolla. Easy path will not be easy without the right strategy.
Good move, now where is the details.
Wed Aug 13 2008 2:47 PM
Laz says

I would hate to see the Chinese buy this car company! Ford is doing this for a quick injection of cash.
Wed Aug 13 2008 4:26 PM
NoNameDenton says

I am with Laz, it would kinda suck to see Volvo in the hands of the Chinese.

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