Back to Volvo

Volvo Industry News Cars

Volvo Plans Lineup Overhaul, U.S. Factory

Volvo Plans Lineup Overhaul, U.S. Factory

Volvo has announced some lofty plans for the coming years, including a new production facility in the U.S. and a completely overhauled model lineup over the next four years. Details remain scarce on both fronts, but what is known is that the Swedish automaker confirmed an investment of $500 million to create an assembly plant for the American region.

But don’t expect any American-made Volvos cruising the streets just yet. Volvo hasn’t even finalized a location of the new production facility, but it has narrowed the search down to three states, which remain unnamed at this point. Based on recent trends, there’s a good bet the plant will be located in the Southeast. The new assembly plant would mark just the fifth such facility globally for Volvo with two located in Sweden and another two in China. Likewise, while there is no indication as to what vehicle(s) would be built in the U.S., there’s a good chance it would be either the XC90 or Volvo’s current top-seller here, the XC60.

Speaking of the XC90, the plan for a revamped lineup in four years means that by 2019, the oldest Volvo product will be the second-generation XC90 that is set to go on sale this year. While this is an aggressive move for the growing automaker, all of the vehicles are likely to be based on Volvo’s new Scalable Product Architecture (SPA) platform.

Continue reading to learn more about Volvo’s future U.S. production.

Read more
Volvo Plans to Revamp its Entire Lineup by 2018

Volvo Plans to Revamp its Entire Lineup by 2018

By now, it’s become readily apparent to everyone that Volvo is undertaking a major rebuilding process that will dramatically alter its existing lineup. The shake-up officially began with the unveiling of the new 2016 XC90. However, the arrival of the new SUV is only the beginning of a multi-year strategy that will see the Swedish brand unveil as many as seven new models in the next three years. According to Digital Trend, the changes will come in such rapid succession that by the time 2018 rolls around, the XC90 will be the brand’s oldest model.

The strategy to completely overhaul its entire lineup is bold, if not unprecedented for a company of Volvo’s size. But now that it has a ton of new technology to rely on, not to mention stable financing courtesy of Chinese owner Geely, the time has come for Volvo to climb back into the picture amongst Europe’s finest auto manufacturers.

The XC90 is step one, but after that, Volvo is also setting its sights on bringing back the S90 to replace the S80 as its new flagship sedan. Past reports have indicated that Volvo will rely heavily on the styling cues of the 2014 Concept Estate, which wouldn’t be a surprise given the overwhelmingly positive reviews it received when it made its debut at the 2013 Frankfurt Motor Show. Together with the XC90, the S90 will sit at the top of Volvo’s new model hierarchy and will likely receive engine options similar to its SUV sibling, including gasoline and diesel four-cylinder engines and a range-topping T8 hybrid model that would have 400 horsepower and 472 pound-feet of torque.

Just below the S90, the XC90, and the V90 Wagon derivative, Volvo’s also looking to reignite its core model range: the S60. On this end, an S60 sedan, a V60 wagon, and an XC60 crossover are all likely to arrive at some point in the near future. There have also been whispers about a 2013 Concept Coupe-based two-door making its way into the Volvo lineup as a competitor to the BMW 4 Series and the Audi A5.

Volvo also has plans to shake up its entry-level offerings with a new V40 hatchback. According to Digital Trend, the V40 will use a Geely-issued platform instead of Volvo’s new Scalable Product Architecture (SPA) platform that most of its big brothers will use.
This could suggest that the V40 will be marketed as one of the company’s most important global models, especially if it’s going to be used as a barometer for its parent company’s own line of vehicles.

There may be a few more models inserted into the lineup in different spaces, but it’s very clear that Volvo is planning to do something we rarely see in the business. It’s going to overhaul its entire lineup at a rapid pace.

Click past the jump to read more about Volvo’s future plans.

Read more
Volvo Plans to Sell Cars Online and Limit its Auto Show Attendance

Volvo Plans to Sell Cars Online and Limit its Auto Show Attendance

Marketing has always been a crutch that automakers rely on to promote their vehicles. It’s been that way for years and it will continue to be that way for the foreseeable future. Volvo,, however, is planning to take a different approach with its future marketing endeavors. Among other things, the Swedish automaker is set to become the first automaker to use online shopping as an integral tool in its sales strategy.

To our knowledge, nobody has fully embraced this approach quite like Volvo seems to be doing now. That’s why it’s both brilliant and insane at the same time. It’s a brand-new day for Volvo and it’s trying to differentiate itself from the rest of the industry by undertaking what it calls the “Volvo Way to Market.”

Part of that plan is to begin putting emphasis on a sales approach that’s become familiar with consumers all over the world, but rarely used in the auto industry. BMW previously thought about online shopping in 2013, only to be met with resistance from its German dealers. As far as Volvo is concerned, this online approach isn’t meant to leave its brick-and-mortar dealers out in the cold, but rather, supplement their selling power with an online tool that will still go through the usual seller network when it comes to deliveries.

In addition to using online shopping to sell its vehicles, Volvo also said that it’s putting in place a three-auto-show strategy that involves participating in just three shows in a calendar year, one for each region where it has a presence. The company has identified the Geneva Motor Show as its European show, the Detroit Auto Show as its North America show, and the alternating Beijing and Shanghai Motor Shows as its Asian show. The rest won’t have Volvo’s presence, something it believes will help keep the company away from the pressure of participating in the constant game of one-upmanship other automakers subject themselves to in these events.

Instead, Volvo will plan some of its debuts at its own annual events, similar to the way it launched the 2016 Volvo XC90 in August 2014. This approach is designed to showcase the debuting models with the lights exclusively beaming down on them.

Click past the jump to read more about Volvo’s new marketing strategy.

Read more
Volvo's New Era will Include New Names for all Models

Volvo’s New Era will Include New Names for all Models

The second-generation Volvo XC90 came with a bang in August 2014. Redesigned from the ground up, the SUV ditched the first-gen’s dated image for a stunning, new exterior looks and an ultra-luxurious interior that are about to spread across the company’s entire lineup. And it seems a few Volvo products will shift to brand-new nameplates in the process, if we are to believe a report coming from Dutch paper De Telegraaf.

Specifically, Volvo is has decided that the next-generation S80 sedan, V70 wagon and XC70 crossover need not just makeovers, but new names too. And all three will be launched within the 90-Series family. The range-topping sedan will switch to S90, the station wagon will become the V90, while the XC70 will be renamed V90 Cross Country. The motivation behind this decision is that all three vehicles will grow bigger and include even more luxury amenities, De Telegraaf adds.

Also in the mix, per reports, is an entry-level 40-Series lineup and a mid-range 60-Series line. Within these series will be S sedans, V wagons and XC SUVs. There is also the chance for slightly heavier-duty Cross Country versions of the V40 and V60 wagons.

There’s no official information when these new vehicles will arrive, but rumor has it the S90 is scheduled to debut in late 2015. The sedan will reportedly be followed by a coupe version and long-wheelbase S90 L for the Chinese market. Volvo will launch new-generation models of its entire lineup by 2017.

Click past the jump to read more about the Volvo XC90

Read more
Volvo Concept Coupe Could Hit Production

Volvo Concept Coupe Could Hit Production

If there was ever a company that needed some infusion of energy to its lineup, it’s Volvo.

Well, after years of toiling on Planet Bland, the Swedish automaker is seriously considering launching its name into the stratosphere after a recent report by Auto Bild indicated that the company is seriously considering a production run for the recently unveiled Concept Coupe.

According to Auto Bild, the concept’s reception at the Frankfurt Auto Show has made company execs enthusiastic about the idea of building a small run of production models for the concept vehicle that may or may not have the involvement of coach house Bertone.

Volvo hasn’t given any confirmation just yet, but you can expect a decision to come soon, possibly as early as the start of the next year. That should give Volvo plenty of time to consider the ramifications of ridding itself of the design complacency the company has been mired in for years.

We’re firmly aboard the belief that Volvo needs to take this plunge, if only to let its customers know that its serious about moving forward with a new design language that could usher in a new era for the brand and its models.

Here’s to hoping Volvo does the right thing and sign off on a production model for the Concept Coupe.

Click past the jump to read about the 2013 Volvo Concept Coupe

Read more
Volvo buying Saab: Sweden to play major role

Volvo buying Saab: Sweden to play major role

Volvo and Saab have long since been rivals in the automotive industry. Recent years have seen a decline in this competition, but the two still share much in common. After General Motors was finished running Saab into the ground by making re-branded Chevrolets with their nameplate, it was sold off. One of the most unique companies in the world, Spyker, bought Saab and has been running it since 2010.

Earlier today a Swedish newspaper has reported that Volvo in conjunction with the Swedish government were in talks about buying Saab. Volvo spokesman Per-Ake Froberg said, “No such talks have been going on and no such talks are scheduled.” The idea of this merger is rather interesting and has several implications on capital markets.

The De Telegraaf newspaper mentions that the Swedish government would like Volvo to take over Saab because that would mean a greater chance that a loan from the European Investment Bank (EIB) granted to Saab, which was guaranteed by Sweden, would be repaid. This type of acquisition would also help Saab deal with its cash problem. Spyker had its 2010 sales fall below forecasts and has therefore struggled to pay suppliers. Sweden has also come to the rescue here by approving financing to help get production on the move once more.

The Swedish government is not the only player in this transaction seeing as China is essentially the owner of Volvo. Geely Automotive Holdings took over the Volvo brand after its sale from Ford. This acquisition was the largest of any automaker by China. You may also remember the acquisition of the Hummer brand, but that paled in comparison to this. The Saab CEO, Victor Muller, has said, “the Swedish carmaker is negotiating with a wide range of Chinese car makers about a tie up.” It will be interesting to see how this situation plays out and whether these two monikers can rise from the ashes of their U.S. ownership and become profitable once again.

Read more
Volvo issues another safety recall over problems with the seating power system

Volvo issues another safety recall over problems with the seating power system

Who would’ve thought that the auto manufacturer that is widely considered to be the safest in the world is now coming under siege with numerous recalls, threatening to put a black eye on what is supposed to be a spotless safety reputation.

It was only a month ago when it was reported that Volvo issued a safety recall of a number of their models over what appeared to be problems directly attributed to improperly manufactured airbags.

As it turns out, that may not be the only problem the Swedish brand is facing these days.

The automaker has issued another safety recall of 7,420 cars with a defective front passenger seat power system. According to federal officials, the problem lies in the front seat rail’s detection system, which, apparently, was manufactured improperly, causing it to move the seat further that intended thereby increasing the risk of injury in the event a crash occurs.

The Volvo models affected from the recall includes 2009-2010MY units of the S40 sedan, V50, and S60, as well as 2010-2011MY units of the XC60 crossover. Volvo has likewise issued a statement saying that their dealers will inspect the problem and fix whatever needs fixing at no cost the customer.

For more information on this latest Volvo recall, you contact the automaker at 1-800-458-1552.

Read more
Volvo adds 2010 XC60 to their airbag recall

Volvo adds 2010 XC60 to their airbag recall

About a month ago, we reported on a safety recall being done by Volvo over an improperly manufactured airbag system covering a certain number of Volvo models, including the 2010-2011 models of the S80 and XC70 as well as 2011 models of the V70 and the XC60.

Unfortunately for Volvo, another model seems to be experiencing the same problem after the National Highway Safety Traffic Administration reported that 58 units of the 2010 Volvo XC60 are all suffering from the same problem.

Just to remind you, the recall is being done due to a problem with the driver’s airbag “clock spring wiring connector for the supplemental restraint system”. The problem causes the airbag to improperly deploy should a crash occur, risking more injury to driver’s involved in the crash.

So if any of you are driving a 2010 Volvo XC60, it’s highly advisable that you contact your local dealers and have them inspect the car for the potentially dangerous problem. In the event that it needs to get them fixed, you should have your dealers fix it as soon as possible.

Despite our fascination for fast cars and exotics, one thing still holds true for us: safety always comes first.

Read more
Volvo recall set for 10,000 cars over malfunctioning airbags

Volvo recall set for 10,000 cars over malfunctioning airbags

The automotive king of safety, Volvo, isn’t too proud of the times when they’re forced to recall cars because of whatever sort of malfunction found in them. Unfortunately, in order to uphold their status as one of the safest brands in the world, the company needs to take care of these issues as fast as they can.

Recently, the company did just that after issuing a recall of 9,746 vehicles over what they claim to be malfunctioning air bags. A number of Volvo models are affected by this problem, including 2010-2011 S80 and XC70 models and 2011 models of the XC60 and V70.

According to the company, the recall was done because of an apparent problem with the driver’s airbag “clock spring wiring connector for the supplemental restraint system” that could cause airbags to deploy incorrectly in the event a crash occurred.

Volvo is looking to begin the recall as soon as it can where the company says that they would install a metal shim on the airbag to fix the problem.

Read more
The deal is complete: Geely gets Volvo, Ford gets $1.8B

The deal is complete: Geely gets Volvo, Ford gets $1.8B

Business deals can be so long and tedious sometimes. Just ask Ford and Geely. After what seemed like an eternity of paperwork and projections, the deal between Ford and Geely for Volvo is finally complete. Originally, the purchase price for Volvo was $2B, but it seems that the sale was completed at $1.8B. Back in March, Geely paid Ford with a note of $200M and some cash. Today, Geely paid off the remaining $1.3B to gain ownership of the Swedish builder, but the final purchase price including closing adjustments will not be revealed until later this year.

As part of the agreement, Ford will continue to supply Volvo with powertrains, stampings, and other vehicle components for differing periods. They have also reached an agreement in terms of intellectual property; both brands will deliver their business plans and establish the proper use of each other’s intellectual property.

As with all business transactions, management positions will be moved around to fill the necessary spots in Volvo. Stefan Jacoby, formerly from Volkswagen, will be Volvo Cars’ President and Chief Executive taking the place of Stephen Odell who will be moving over to another leadership position within Ford. Volvo will receive a new CFO by the name of Hans-Oskarsson, who is currently deputy Chief Financial Officer. Stuart Rowley will also be given a leadership position within Ford Europe.

Volvo will keep their headquarters and manufacturing centers in Sweden and Belgium.

Congratulations guys. We hope this long and tedious transaction works out for both sides.

view all
Read more
Geely plans 150,000 annual production volume for Volvo by 2015

Geely plans 150,000 annual production volume for Volvo by 2015

Geely, the new owners of Volvo, have big plans for the Swedish car brand. In fact, they have the kind of plans that could lead to an increased production volume that could invariably lead to a bigger global presence.

According to Reuters, Geely is ambitiously looking at reaching the 150,000 annual sales unit plateau in the coming years. Not surprising in the least bit considering that the Chinese automakers just invested millions in Volvo with the hope of revitalizing the Swedish car brand.

Known for its impeccable track record of being one of the safest cars on the planet, Volvo has a few models on the pipeline that are slated for releases in the coming months, including the XC60 SUV as well as the S60 sedan. Geely expects both cars to do better than expected and is already seeking to ramp up production volume by opening a new Volvo production facility in China. There’s no word yet on where this new facility is going to be built, but word has it that both Beijin and Ningbo have emerged as front-runners on where the new facility is going to set up shop.

After purchasing Volvo fromFord, you can pretty much expect that Geely will take full advantage of tapping into its home market of China, which is fast becoming one of the largest auto markets in the entire world. That advantage in itself will go a long way in reaching that 150,000 mark Geely has set for Volvo by 2015.

Read more
Volvo recalls cars over faulty transmission

Volvo recalls cars over faulty transmission

Volvo and safety have gone hand in hand for years, but the Swedish automaker has announced a big recall. It will cover three model lines, including the C30, the S40, and the V50. All three of these models being recalled are from the 2010 model year.

According to Volvo, the recall only included the C30, V50, and S40 models equipped with a six-speed manual transmission. Putting a manual in the V50 and S40 seems a bit odd and, as you would imagine, not many Volvo owners have one. We would imagine that there are more C30 manuals than the other two combined. The total number of cars recalled is around 536.

The gearshift level stub assembly may not have been properly tightened at the factory. This could cause the gearshift level cable or stud to come loose. If this happens while driving, it may not be possible to shift gears. As you could imagine, this would not be good. On the plus side, the problem shouldn’t cause any accidents.

Dealers will fix the affected vehicles by tightening the gearshift level stud assembly, hopefully free of charge. Owners will be notified by the end of the month. No accidents or injuries have occurred because of the problem.

Read more