Volvo For Sale. I’ll Roll With That.
Rolling along.(img: Automobile)
Detroit’s influence on Goteborg has produced mixed results, to be kind.
Good: the Ford-initiated XC90 is not only comfortable, safe, and moderately stylish, it has been a real sales booster for Volvo. The SUV would not have been possible without the Blue Oval’s financial backing. And Ford has re-imaged the marque to appeal to families – i.e. the penultimate soccer mom transport.
Bad: the whole family image thing gets boring even to those who buy with school runs in mind.
The V50’s a flop.
Volvo’s reputation for safety is proving to be as much marketing as substance. IIHS gave the S40 sports sedan a merely “acceptable” rating in a side-impact crash test. This means that the driver dummy would have suffered internal injuries and broken ribs if broadsided by an SUV traveling 40 mph. Same results for the larger S60.
By comparison, the Audi A6 was rated “good” in the same test; drivers and passengers would walk away without serious injury.
Good: the new Volvo C70 hard-top convertible is even better than the last convertible – safer (top pick from IIHS) and more refined. The car looks especially sharp in red.
Bad: few but the party faithful will buy a $40K+ convertible from the soccer-mom car company.
Good: Ford has invested faithfully in its Swedish subsidiary and received a profitable carmaker in return.
Bad: The fiscal magic is losing its shine with weaker M.Y. ’07 sales in the U.S.
In sum, it’s been fun (sort of) but Volvo’s ready to roll on down the road.
Sources: [IIHS, Consumer Reports, Financial Times, Morgan & Co.]
About the Author: Gunnar Heinrich is publisher of Automobiles De Luxe online and is executive producer of the Automobiles De Luxe Television series on PBS member station CPTV.
steane | Jul 16, 2007 | Reply
Hey Gunnar, any idea where the influence for the gorgeous Volvo C30 came from. Was it Detroit or the Volvo bit of Volvo…?
I’m not a huge fan of the Swedish marque but their new(ish) C30 is a stunner inside and out.
I think, given Ford’s current issues the sale of Volvo was inevitable. Its just a pity the 8 billion will be like a couple of coins rattling around in their very deep tin.
J | Jul 16, 2007 | Reply
BMW & Volvo? Seems logical from a business prospective, but the propeller heads, hate the thought.
BMW can continue to focus on sports and luxury sedans and sports cars while Volvo handles the family hauling.
Jim
Gunnar Heinrich | Jul 16, 2007 | Reply
Steane > I’m not a fan of the C30 per se. And the bizarre marketing for that car has been a real turnoff. So to answer your question, I’m not sure where the influence came from – it could be Ford Europe or Volvo themselves.
Jim > That’s just it, I’d like it Volvo could be seen for what it really could be – a versatile car maker for all occasions (not just family hauling) like Saab or Audi.
J | Jul 16, 2007 | Reply
Saab? Doesn’t seem like all that many people consider Saab at all.
Volvo has tried to expand beyond the upscale stroller hauling set and tweed jacket crowd, but the results haven’t been all that successful. There’s nothing wrong with that market niche and with the right partner they could strengthen and widen their products.
I like Volvo (and Saab) and believe that if BMW wants to do this deal it would be a winner for both companies
Jim
Gunnar Heinrich | Jul 16, 2007 | Reply
Jim > Let’s not be too German-centric. Saab does have its own set. The Northeastern States, for example. The point here is that Saab has a much more versatile image than Volvo – it appeals to people who want to drive safely and to drivers who want to drive for fun.
Let’s hope BMW is the one to buy Volvo.
J | Jul 17, 2007 | Reply
Gunnar, I really do like Saabs and feel what GM has done to the brand is a travesty. Heck I almost brought home a 9-3 Combi last year, but then got alergic to the idea of car payments.
But even in the northeast (I live there), Subaru has replaced Saab as the iconic New England vehicle.
Jim