Napa, CA
- Though the "V" in V70 may stand for versatility, it is the Volvo wagon's new and larger sibling that
steals the show when it comes to the "V" word. The XC90, Volvo's first foray into the bountiful SUV market
proves to be a true exercise in engineering, particularly in the areas of safety and yes, versatility.
Considered a hybrid or a "soft-ute", the XC90 is based on Volvo corporate P2 platform, first introduced
with the S80 and now also used for the V70 and S60 as well. This particular version, with longer wheelbase and
wider track than any of its predecessors, weighs in at 4,450 lbs. or more depending on how it is equipped. It can
seat up to 7 passengers if you opt for one of the models that include the third row seat, and it does so more safely
than virtually any other SUV on the market.
Such a significant vehicle in the most talked about segment of the industry is certainly something making many
sit up and take notice. As Volvo explains, this is the most important launch since the 1993 introduction of the
850, heralding in the era of front-wheel-drive at Volvo. Looking back to 1990, SUVs accounted for only 930,000
vehicles. By 2002, the segment accounts for more than 3.9 million sales. For these reasons, Volvo wanted to assure
the vehicle be perfect from the start. To be honest, we're fairly certain they've succeeded.
XC90 History In Brief
Volvo's choice to join the ranks of SUV manufacturers was actually made on June 23rd, 1999. It was that date that
Volvo executives gave the go-ahead to begin development of the vehicle. At that time, they placed several criteria
on the car. First, and no surprise coming from Volvo, it had to be the absolute safest vehicle in its segment.
Second, Volvo wanted to build a vehicle that had a higher capacity of seating than any of its previous models.
Third, they did not wish to build yet another lumbering road yacht, so a total maximum length of 189-inches was
stipulated. Finally, they wanted to introduce the fully developed production version by the Detroit Auto Show in
2002, a relatively short amount of time to bring a new vehicle to market.
Engineers at Volvo most obviously chose the all-new P2 platform that had recently been introduced with the S80.
By utilizing that chassis, Volvo had also made a choice that would prove to keep the cost of the vehicle competitive
through utilizing common parts. In addition, this meant that the engine would be mounted transversely, saving enough
room so that the XC90 could be built to the 189-inch size constraints, but also make use of a third row of seating
to increase the passenger capacity of this new Volvo.
As is typical, Volvo assigned several designers the task of creating an exterior look for the vehicle. Three models
were created, and it was the vehicle designed by Doug Frasher , of Volvo's Camarillo, CA design studio, that was
chosen as the final look for the XC90. If you notice a strong family resemblance between the XC90 and Volvo's other
models, that's no surprise. Doug has also been behind other designs at Volvo such as the S80 and the preceding
ECC concept vehicle that had inspired it.
While concept cars usually inspire production vehicles, it was actually the other way around at Volvo In an effort
to drum up excitement for the XC90 and to gauge the market's acceptance and demand for the vehicle, the Swedish
company chose to develop a concept vehicle to be shown on the auto show circuit. Normally done in the opposite
order, with the concept inspiring the production vehicle, the Adventure Concept Car (ACC) was instead inspired
by the developing XC90 program.
With no tooling yet ready for the XC90, the ACC could not built using an existing model such as the PCC or PCC2.
Rather, its design was simply based on a production car that was not yet ready for introduction. In an effort to
differentiate it and so as not to show their hand, Volvo chose not to play the card revealing their third row design
or interior flexibility, however the basic look of the XC90 was certainly maintained.
By the cold winter days of the North American International Auto Show of 2002, Volvo was able to bring several
preproduction versions of the car to share with the rest of the world. In an adjoining arena at the COBO Hall convention
center, a large group of automotive press was welcomed by the new XC90 and it was promised that they'd be in dealerships
by the latter half of 2002 as a 2003 model. With availability quickly approaching, Volvo invited members of the
press to San Francisco, California to drive the XC90 and see it first hand.
Jumping Into The Foray
As has been mentioned, the XC90 is Volvo's first attempt at the modern SUV market. While the V70 XC, recently renamed
the XC70 for 2003, has been pleasing those with active lifestyles since 1998, the XC90 had to jump to the next
level. It does so in competition with such competitors as the BMW X5, Mercedes-Benz M-class, Acura MDX and designated
king of the sales hill Lexus RX300, all keenly set in the crosshairs of those marketing the XC90.
Those competitors are all developed from a car-based or minivan-based platform and are positioned as luxury models
that are attractive to young and affluent buyers. They typically exhibit a higher level of safety. This particular
hybrid or "soft-ute" portion of the SUV industry accounted for 204,618 sales in 2001. To compare that,
the Jeep Grand Cherokee sold 203,906 units in the same period of time. It is entirely possible that the XC90 will
steal sales from all of these competitors including the Jeep, as Volvo expects a whopping 70% conquest rate of
buyers from other brands migrating into a Volvo for the first time.
Once launched, Volvo expects to sell just shy of 40,000 vehicles per year through 2006. Should it be needed, they
currently has capacity to build 50,000 XC90s a year. 30% of these will be front-wheel-drive, though they expect
that average to drop to only about 18-20% throughout the XC90's production lifecycle.
While sharing these figures with us, Volvo also chose to share several more:
Related Figures
+
XC90 Average
Volvo Average
Male/Female Buyer Ratio
55% : 45%
49% : 51%
Married
85%
79%
Median Age
45
47
Median Household Combined Income
$145,000
$118,000
+ 40% of all XC90 owners are expected to own three or more vehicles.
+ 25% of all XC90 owners will be owned by minotirities.
+ 25% of all XC90 owners will live in cities.
Figures Provided by Volvo Cars of North America &
Are Applicable to the U.S. Market
With the average age of XC90 owners being younger than Volvo's
average as a whole, and so many new conquest buyers being added, Volvo fully expects the XC90 to further benefit
the brand through improving the brand image. With a hipper image, aspirational buyers are more likely to join the
Volvo fold.
Also, the SUV segment has been the largest loss of customer/owners. 1 in 4 people leaving the brand were migrating
right into an SUV model. If Volvo can succeed in making its SUV that is attractive to those buyers alone, then
the XC90 will already be a success.
A multi-faceted ad campaign will begin during the fourth quarter of this year to help promote the vehicle. TV and
print spots for the XC90 are an important part of that, though Volvo says they'll be making the most major thrust
on the Internet
Even with no advertising thus far, Volvo has already taken more preorders on the XC90 than ever for a new model
in the USA. At last count, there were roughly 3,000 orders for the new SUV, with 80% of those for high-spec T6
models including the third row seat option. 50% of these orders are conquest buyers, new to the Volvo brand.
