Volvo still wants to compete with the Germans, despite rumors of sale
Ford says Volvo's not for sale, and the Blue Oval would be smart to hold on to its remaining vestige of the Premier Auto Group as long as it can, especially since engineering and platforms have become so entwined with Dearborn's product line. For its part, Volvo is angling to take on the high end Germans. Volvos have long been premium products, having built a reputation on exceptional durability, meticulous engineering, and of course, safety. Try as it might, however, Volvo has a hard time competing head on with BMW, Audi and Mercedes. The cachet of the Swedish automaker is diminished compared to the Germans, and dynamically, Volvos tend to get schooled hard despite being good, capable drivers when taken alone.
Operations chief Steven Armstrong tells Automotive News that Volvo is looking to be mentioned in the same breath as its intended targets, even as losses mount and layoffs ensue. Volvos already occupy the same pricing arena as the premium Germans, but that's partly due to a weak dollar and transport costs. The possibility of building its cars in the United States might bring prices down and allow better developed performance versions, versus the outclassed R models of the past. Also hurtful is the model range's appetite for fuel -- we've gotten mileage in the teens from some Volvos in the Autoblog Garage. Armstrong says that the fuel economy issue will be addressed soon as technologies like start-stop, energy recovery from braking, and further down the road, hybrid powertrains are brought to market. Green is a good way for Volvo to go, given the Scandinavian proclivity for low-impact, gentler consumption. What it all means is that soon, we may see a kinder, gentler, meaner, faster Volvo product lineup -- possibly managed by Russian, Chinese, or Swedish owners.
[Source: Automotive News – sub req.]
Reader Comments (Page 1 of 2)
Mobius_1 11:43AM (7/07/2008)
Personally, I think Volvos are elegant, nice, comfortable, sensible, safe cars, and some of them are even pretty fast, Ford would be wise to hold on, especially since they leeched quite a lot of Volvo tech for their own cars
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Alex 11:44AM (7/07/2008)
For a while there Volvo wasn't allowed to compete with the Germans. That was Jaguar's weight class. Now that Ford doesn't have to worry about the big cat, they can bump Volvo up to the new class.
I think Volvo has the respect in the motoring world but their cars' driving dynamics and the public's perception will need some serious shifting if they are truly going to compete.
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Torrent 11:57AM (7/07/2008)
Good luck Volvo. No really. Good luck.
Step 1: make color coordinated interiors, not mismatched textures and "mystery fabric" seats.
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Alex 12:36PM (7/07/2008)
Have to dissagree, the S80 has one of the nicest interiors on the market.
halogenrepublic 1:38PM (7/07/2008)
I also have to disagree. Volvo has one of the nicest interior design. The "mystery" fabric is similar to the material that is found in making wet-suits. Hypoallergenic and less cow slaughtering.
Torrent 2:26PM (7/07/2008)
WHAT IS THE MYSTERY FABRIC!!?!?
thiel 2:26AM (7/08/2008)
Yeah agree on the S80, the interior in the flesh is beautifully detailed, with great quality. It was one of the best surprises I had at the last motor show I went to.
brmacrae 12:09PM (7/07/2008)
Love my 6 mo. old XC90 V8. Beautifully-crafted interior, tons of space for 5 with lots of luggage, will seat 7 with the 3rd row up if you need it.........terrific Yamaha-built motor really screams, AWD, and mileage is about 24 mpg on the hwy. Average city/hwy is about 18-19mpg.
Underappreciated, for sure, and the V8 gets better "real world" mileage than the 3.2 does:)
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jamie 1:06PM (7/07/2008)
OUCH! Let the bidding begin....
Ford won't comment on report Chery wants Volvo
Monday July 7, 12:23 pm ET
Ford declines comment on report China's Chery interested in Volvo
DEARBORN, Mich. (AP) -- Ford Motor Co. isn't commenting on a Chinese business journal report that China's Chery Automobile Corp. is interested in buying Ford's Volvo unit.
Caijing Magazine quotes unidentified sources as saying Chery is looking for bank and equity investor help for a possible bid for Volvo, Ford's Swedish nameplate.
Ford spokesman Mark Truby said Monday the automaker won't comment on the report.
He says Ford decided last year to concentrate on improving Volvo's business performance, rather than selling it.
The Associated Press has sought comment from Chery.
Ford shares are up 18 cents, or 4 percent, to $4.60 in midday trading.
http://biz.yahoo.com/ap/080707/ford_chery_volvo.html?.v=1
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Enlightened_One 1:01PM (7/07/2008)
Now that they ARE the PAG sky is the limit. Volvo's are capable of being stupid fast, just look on youtube for examples. They have a loyal following as well of teens and adults. My first car was an 850 T-5 and it changed all my perceptions, just wish the brakes were better and it would still be around today. High income families have their Volvo's parked right next to their Ferrari's and vintage cars so they have their foot in the door already. They are capable of great things, just look at their concept cars. The current C70 just needs a power boost and a proper suspension set up to start competing with the Germans, it already looks great and you can hardly tell it is a convertible with the top up. They make great roadtrip cars too, their seats are second to none as well as sound systems. Yah I am a Volvo fan if you haven't already guessed.
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Kumar 1:02PM (7/07/2008)
They could take the rug out from MB and BMW by offering diesels in all of their offerings down to the C30. They'd instantly become the luxury imports that get really good mileage, leaving you to buy the high end other imports if you want anything with a diesel in it.
Reminds me of another reason Chrysler is going down the tubes. If they could only barter a deal with VW to get their new diesel engine in the Caliber/Compass/Patriot and midsize, then people would care a little less how craptastic the interiors are, because of how good the fuel economy is.
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Swede 6:20AM (7/08/2008)
But they already do...
MikeInNC 1:10PM (7/07/2008)
I've got an '05 S40 T5 and I average 28mpg. That is certainly not bad at all. Great cars but they will have to spend more time getting their suspensions tuned if they want to compete on the track with BMW who's numbers look mid pack until you put them on a road course.
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Ovidiu Miron 1:13PM (7/07/2008)
Ford says Volvo's not for sale? We'll see. The world of business is really crazy. And what is true today, tomorrow is differently.
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itsmeee 1:40PM (7/07/2008)
Picking up a 2005 S60R in the next month. I was deciding between a 2001.5 Audi S4 and the S60R and while the Volvo is a little slower it destroys the Audi with it's interior, price and standard options.
I'm glad to hear that they are at least thinking about bringing it back.
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geo.stewart 3:39PM (7/07/2008)
good choice.
BTW, not sure about the R but the mileage dig is bogus.
family member had an S60 base that got 30+ mpg in the mountains. cant beat that in a mid-size
Dan Roth 3:55PM (7/07/2008)
Not bogus. I drive a 2001 S60 T5 as a DD, and I get 26.5 regularly - not bad. The 2008 V70 and 2008 S80 I had as media cars struggled to attain 20mpg on the same loop. That's a thirsty vehicle.
CH 5:41PM (7/07/2008)
Dan, the 2001 S60 T5 (243 hp, FWD, auto) is rated at 20 mpg combined under the 2008 EPA standards. The ratings for the new S80 and V70 are:
S80 3.2 (235 hp, FWD, auto) 19 mpg
S80 T6 (281 hp, AWD, auto) 18 mpg
S80 V8 (311 hp, AWD, auto) 18 mpg
V70 3.2 (235 hp, FWD, auto) 19 mpg
Those are the valid comparisons.
Numbers from informal uncontrolled testing, as you described, are unreliable because fuel economy is way too sensitive to way the vehicle is driven, road and traffic conditions.
FSM 1:54PM (7/07/2008)
First thing they will need to do is make their bumpers look better. I have always hated that asymetric diagonal line across the front.
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OOMPH! 4:31PM (7/07/2008)
ive always loved Volvos...i dont know why they feel the need to compete on the high "german"end market..just be honest volvos!! too bad AB Volvo wont buyt them back...or a former member of ABBA or someone! lol
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