September 15, 2014
Volvo catching up with BMW
Volvo has been struggling with sales over the past several years, but the launch of a new luxury SUV may put the brand back on top. Ronn Torossian says that sales for the new SUV may even rival Volvo’s long-time German competitor, GMB. Excitement for the new vehicle is already at a fever pitch after a tantalizing marketing campaign that only revealed portions of the new XC90. Now, the SUV is hitting the market and already gaining momentum on its climb to the top.
According to Torossian, the furor from the XC90’s launch could reverse the downward slide that Volvo has had since being owned by Ford Motors from 1999 t0 2010. Now owned by a Chinese company, Volvo is returning to its roots and only using Swedish parts to make its vehicles. The company hopes that the XC90 will help to double sales of Volvos in the United States by the year 2020.
Volvo began to reveal the XC90 with a tantalizing marketing campaign that featured photos of parts of the new SUV, but never unveiled the entire vehicle. Back in June, the interior was finally revealed. A big flatscreen in the console, blonde wood trim, and all the bells and whistles make the XC90 a top of the line luxury SUV, and the recently revealed exterior is just as attractive.
One of the major selling points of the XC90 is that it is the first car in fifteen years to be made entirely from Swedish parts. It is a complete relaunching of the Volvo brand after the legacy left by Ford Motors. After being purchased by Chinese company, Geely, Volvo has undergone several changes including an all-new, ultra efficient engine that will be cleaner than the Toyota P
Such advances, however, do not come cheap. The XC90 is priced at $66,000 dollars initially with a limited edition version that jumps to $91,000. Only 1,927 of these will be sold. The price may seem steep for what Volvo has done in the past, but the company is confident that the new SUV will compete with other vehicles in the same price range such as the BMW X5.
Torossian says that Volvo has made huge strides in rebranding itself and earning back a share of the American market with the XC90. A slow marketing campaign was key for intriguing potential buyers, and now Volvo is confident that they will be able to compete with car companies such as BMW.