If Volvo Goes Under, Will Anyone Care?

If Volvo Goes Under, Will Anyone Care?
It's sort of like that cliche'd phrase: "If a tree falls in a forest and no one is around to hear it, does it make a sound?"

While that may sound harsh, it's a sad reality for Volvo. The Swedish automaker who was once known for making some of the safest vehicles on the planet seems to have eroded its brand equity into something that's very niche right now. And as we've seen with its lineups redesign for 2014, it's very milquetoast.

The most exciting thing going on at the brand was the S60 Polestar Concept, which now has finally come to fruition — only in Austraila — and the 500 + horsepower monster was diluted into something more along the lines of 300 something. It was a disappointment.

The most recent hubbub was a teaser for what may publications thought was an all-new vehicle. It turned out to be something having to do with the music group Swedish House Mafia and the new XC60. Again, disappointment.

Just the other day, a financial news website that gives strong opinions predicted that Volvo will be one of 10 brands that will "disappear in 2013."

If you ask us it appears that it's on track for a Saab-like end. And that's a shame because, personally, I still love its products. The S60 and XC60 are good vehicles but they're lacking that certain panache that makes something GREAT.

 

5. Volvo

In the United States, Volvo was never a giant manufacturer with a large number of models or ultra high-end brands. As of April, its market share in America had dropped to 0.3%

The company’s models compete directly with mid-luxury offerings from every large auto company in the United States, including giants General Motors and Toyota. It also has more direct competition from low-end models made by BMW, Mercedes and Audi. With all that competition, consumer demand just is not there for Volvo cars. In the first four months of this year, Volvo sold 19,571 vehicles in the U.S., down 8% — in an overall market in which sales rose almost 7% to 4,974,000. A mid-market car company without a broad range of sedans, SUVs and light trucks would find it hard to make any progress in the United States. Volvo’s model line is too small to allow it any chance...



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jeffgalljeffgall - 5/31/2013 1:00:26 PM
+1 Boost
I see two issues. Their prices are too high. They need to slot their vehicles as sub premium. Not luxury. Meaning,, sell the S60 for less than a 3 series/A4. I was shocked how expensive the S60 is. Didn't help that AWD was only available in the larger engine when it first came out. They also need a new XC90. Current one is too old. This vehicle is priced well and did well in its early years, but needs serious updating


Agent00RAgent00R - 5/31/2013 10:51:12 PM
-1 Boost
Agreed.

Problem is this, they're not priced at a premium to rake in margin. These vehicles have a ton of technology going on and the powertrains aren't cheap to produce.

They have to be that expensive to make $.


BimmersNmeBimmersNme - 5/31/2013 2:26:45 PM
+2 Boost
I always admired the VOLVO brand and really hope they can solve their problems and stay afloat. (fingers crossed here)


Henanamani1Henanamani1 - 5/31/2013 5:31:38 PM
0 Boost
NO


pepito66pepito66 - 6/2/2013 11:05:39 AM
+1 Boost
I don't see a real future for Volvo because was bought by a chiness company with an specific purpose have the complete legal right to copy and paste theirs technology , same as Ford did before , so will see better chinesse cars and a Volvo company stuck in a hole with old models until they decide what to do with them , will see.


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