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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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    • 1 Second Ago
      • 6 Years Ago
      - 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?

      • 6 Years Ago
      Beside the core safety message, I think the core Volvo audience is people who want a bit of Euro-style luxury but want to be more low key than BMW/Mercedes.

      I agree with those who say that current Volvos are not fuel efficient enough. Volvo's audience is willing to trade performance for gas milage. Some because of practicality, some because of environmental beliefs.
      • 6 Years Ago
      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 .
      • 6 Years Ago
      Is there cash on the hood for the C30? Can I get myself a cheap Swedish strumpet with a glass behind?
      • 6 Years Ago
      Very nice looking Volvo!
      • 6 Years Ago
      Volvo needs a Tiguan type vehicle to offset it's large SUV sales decline.
      • 6 Years Ago
      i think you meant to say XC90.
        • 6 Years Ago
        No he means XC60.
      • 6 Years Ago
      What is this- like a job firing trend? It's like a new fad or something.
      • 6 Years Ago
      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.
      • 6 Years Ago
      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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