Filed under: Hirings/Firings/Layoffs, Volvo
Volvo to trim 30-percent of U.S. dealers by the end of next year
Volvo hasn't been doing too hot lately, posting a $1.73 billion loss over the past five years as it flails to find its niche. Sales of almost every Volvo product have declined in 2007, with the S60 falling by 28.1 percent, the XC90 dropping 5.6 percent and the V70 station wagon losing 7.7 percent. For June of 2008, Volvo only moved 7,001 vehicles, down 14.2 percent compared to last year. Something has to be done on the retail side, and according to Automotive News, dealers are on their way out.
The automaker is looking to cut out approximately 30 percent of its U.S. dealer network by the close of next year, however, Volvo retailers won't be cut in Europe, nor Russia, where Volvo is a leader in premium vehicle sales.
Volvo recognizes that part of its problem is fuel efficiency, so it's focusing on producing smaller vehicles and pushing its C30 hatch hard in the States. A hybrid version of the XC60 is in the works, but that won't be out for at least another three years... in Germany, and as a stopgap, Volvo plans to implement start-stop technology on its smaller engines.
[Source: Automotive News – Sub. Req.]
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Reader Comments (Page 1 of 2)
Torrent 5:30PM (7/11/2008)
What is this- like a job firing trend? It's like a new fad or something.
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HAWC1506 5:34PM (7/11/2008)
i think you meant to say XC90.
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Torrent 8:34PM (7/11/2008)
No he means XC60.
HAWC1506 5:36PM (7/11/2008)
That's really weird. In Washington state, I see Volvos about as much as Chevys. XC90s for the parents, S40s for the kids...
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stealth 5:49PM (7/11/2008)
same here in new england
it seems like one out of every 30 cars is a volvo
Alex 6:43PM (7/11/2008)
Agree, in chicago there are tons of Volvos and in the wealthier suburbs they seem to be every other car. Same thing with Saab...9-3s seem to be everywhere in the city.
Seoultrain 7:03PM (7/11/2008)
I'm in Washington also, near Seattle, and I hardly see any newer Volvos. Certainly no S40's or S80's. Though I have seen a couple S60R's, which is pretty cool.
Jrejre 6:00PM (7/11/2008)
C30 is an interesting car but it's about $5000 too expensive.
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Eakarach 6:39PM (7/11/2008)
Very nice looking Volvo!
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HAWC1506 8:45PM (7/11/2008)
I'm talking about Bellevue, Issaquah, and Sammamish areas. There are tons of new Volvos.
carl 7:11PM (7/11/2008)
The '06/ '07 S60R was a great car - exceeded/exceeds the '09 Acura TL awd in just about every way (possibly including reliability, per consumer reports, where the '07 S60 beat the reliability of the '07 TL). To bad they killed the real R cars. It was a big mistake. They were really starting to catch on. I hope they shut down Jim Fisher Volvo in Portland, OR. They are terrible!
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Mike!!ekiM 7:41PM (7/11/2008)
- Volvo's have been Grossly Overpowered for the last 5 years, ever since Ford bought them. Every-time I look at a Volvo I see they don't want to sell me a vehicle:
- C30 - 5 cyl, 227 HP
- XC60 - 3.0 5 cyl, 281 HP
Do they expect me to do a couple laps at Watkins Glen before I buy some milk and eggs at Giant supermarket?
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Mike!!ekiM 7:49PM (7/11/2008)
Volvo recognizes that part of its problem is fuel efficiency, so it's focusing on producing smaller vehicles and pushing its C30 hatch hard in the States. A hybrid version of the XC60 is in the works, but that won't be out for at least another three years...
- JUST OFFER SMALLER ENGINES!
- Where's the HYBRID C30!!!
- Where's the Diesel C30!!!
- Where's the Four Cylinder C30!!!
Just like GM, they aren't going to get it until their bankrupt.
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Ken Stamper 6:09AM (7/12/2008)
The answer to the last two of your three questions are "In Europe"
CalGuy 9:39PM (7/11/2008)
Change can be good and help innovation, but there's a little irony, that as Volvo had shed its boxy image.. design has turned back towards the box (Chrysler 300, Ford Flex, Dodge Nitro, Hummer)...
I think Volvo could rebound by referencing what made them so successful in the first place: practicality, comfort, power relative to economy... with a little sexy Swedish design. Trendy, Chinese looking cute-utes with no timely eco-tech might not be the answer.
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Dr. Nick 10:10PM (7/11/2008)
Is there cash on the hood for the C30? Can I get myself a cheap Swedish strumpet with a glass behind?
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nastinupe1 7:24AM (7/12/2008)
Here's the problem with Volvo
1) Horrible marketing. Their slogan should be
"Volvo... Smart" They should advertise to "educated people" and create a "Smart" image. The image that everyone who drives a Volvo is a well paid, educated, worldy person who doesn't have their head up their ass like Mercedes and BMW.
2) Volvo need's to update their interior. Have touch screen navi in all their cars standard and have safety features interegarted into the touchscreen controls.
3) Volvo need's to become the premier car for safety the way it was in the 80's. Mercedes has taken it's place, although people don't buy Mercedes for that reason. However, people did buy Volvo's for being safe.
Volvo should replace the airbag for that foam stuff we keep seeing in the movies. If they are the first to do that then they will be on top again.
4) All Volvo car's need to be Hybrid. Not an option, but entirely hybrids. And not the Accord/ Lexus Hybrids that only get like 28 MPG. I'm talking about 4 cylinder hybrids that get high 30's low 40's MPG.
5) Volvo needs a Halo car. A $100,000 sedan that can compare to a Flying Spur.
And that my friends, is how Volvo can get back on track.
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nastinupe1 7:25AM (7/12/2008)
Here's the problem with Volvo
1) Horrible marketing. Their slogan should be
"Volvo... Smart" They should advertise to "educated people" and create a "Smart" image. The image that everyone who drives a Volvo is a well paid, educated, worldy person who doesn't have their head up their ass like Mercedes and BMW.
2) Volvo need's to update their interior. Have touch screen navi in all their cars standard and have safety features interegarted into the touchscreen controls.
3) Volvo need's to become the premier car for safety the way it was in the 80's. Mercedes has taken it's place, although people don't buy Mercedes for that reason. However, people did buy Volvo's for being safe.
Volvo should replace the airbag for that foam stuff we keep seeing in the movies. If they are the first to do that then they will be on top again.
4) All Volvo car's need to be Hybrid. Not an option, but entirely hybrids. And not the Accord/ Lexus Hybrids that only get like 28 MPG. I'm talking about 4 cylinder hybrids that get high 30's low 40's MPG.
5) Volvo needs a Halo car. A $100,000 sedan that can compare to a Flying Spur.
And that my friends, is how Volvo can get back on track.
Reply
k.w.a 7:34PM (7/13/2008)
i couldn't imagine a $100k Volvo. However, I agree with everything else. They should make their Halo car around $60k-$70k to compete with the Sclass and 7 series.
I think volvo is taking baby steps towards progression by making their cars more appealing (to younger folks) and inches towards being realized as a real luxury brand. How to seem cool while pitching safety and practicality, well, that's the hard part
jimbee 9:42AM (7/12/2008)
thaas a current S60-R driver and a soon to ex Volvo driver all i can say is where is the soul of Volvo? they have become a company that sells mommy mobiles with zero driving excitement.Ther e are too many wagon like vehicles and what sedans there are are all undepowered, overweight ,and oversized.Ford has succeeded in making a second line of Mercury cars .
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