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Volvo CEO Samuelsson nixes super-luxury flagship

6.3K views 30 replies 17 participants last post by  fd_uk  
#1 ·
Volvo isn't going to develop a flagship sedan to challenge the BMW 7 series, the Mercedes-Benz S class or the Audi A8.

Certainly not now, and maybe not ever.

In a Saturday interview at the Shanghai auto show. Volvo CEO Hakan Samuelsson told Automotive News China that such a flagship doesn't fit Volvo's "green image" and is not, in fact, the sort of vehicle that Volvo customers would even consider
Read more: Volvo CEO Samuelsson nixes super-luxury flagship
 
#2 ·
I hate it when brands speak of marketing goals such as this. Even if Volvo decides to never build the damn car, they shouldn't be telling us that they aren't, because now people may not be interested in the brand as they might have been otherwise. I know this because sales from Volvo are crap and the brand is losing interest. My idea is keep the plans elusive. Tell us what you are going to make, don't tell us what you won't make.
 
#30 ·
they shouldn't be telling us that they aren't, because now people may not be interested in the brand as they might have been otherwise.
They're really going to be playing up the green thing over the next few years. Realize that Volvo's strategy will be to become to the luxury segment's Prius - but a whole brand instead of just one car.

I'm half expecting the XC90 to launch with a 40MPG hybrid engine only.
 
#3 ·
I don't think keeping people in the dark about cars they will ultimately never make is a good strategy. Anyone looking for a 7 Series replacement isn't going to wait around forever for Volvo to come out with a vehicle so either way it's a lost sale, assuming the sale would have been there to begin with. Volvo hasn't shown a concept either so really they're just saying that this rumored vehicle isn't happening, not that something is being cancelled. It's not really surprising either. With their alleged 4 cylinder only strategy it's not surprising they won't be competing in that segment. All of those sedans are large and heavy but they're also very powerful. Volvo could never make something compelling with their downsized engine plan.

I'm much more comfortable knowing what the product plan is rather than being kept in the dark. I think people are far more likely to abandon a brand that vaguely talks about models and never delivers over a brand that lays out their product plans.
 
#6 ·
I don't think keeping people in the dark about cars they will ultimately never make is a good strategy. Anyone looking for a 7 Series replacement isn't going to wait around forever for Volvo to come out with a vehicle so either way it's a lost sale, assuming the sale would have been there to begin with. Volvo hasn't shown a concept either so really they're just saying that this rumored vehicle isn't happening, not that something is being cancelled. It's not really surprising either. With their alleged 4 cylinder only strategy it's not surprising they won't be competing in that segment. All of those sedans are large and heavy but they're also very powerful. Volvo could never make something compelling with their downsized engine plan.

I'm much more comfortable knowing what the product plan is rather than being kept in the dark. I think people are far more likely to abandon a brand that vaguely talks about models and never delivers over a brand that lays out their product plans.
History seems to agree with you - look how long Jaguar d***ed everyone around with sportscar concepts and E Type / F Type rumors ... now they're desperate.
 
#4 ·
The bigger and more expensive the luxury sedan, the fewer brands can dominate the share. It is silly to try to chase the 7-series market, when the volume is so low and Volvo needs volume at this point. Do you think the A8 is keeping Audi alive? Even the mid-size (A6, 5 series, E class) is a hard one to break out of if you are not BMW or Mercedes-Benz. Volvo's main concern needs to be S60, XC60, XC90. YES I KNOW It's very hard to play the waiting game on the XC90, but you have to remember that Ford starved Volvo of product development funding. At the end of the day its the right products that win. Always has been and always will be. And the more UNITS you sell, the more funding you have to continue to improve the next generation of products. A full-scale premium luxury sedan is a distraction from the real business of selling a lot more vehicles.
 
#5 ·
Compete with MB S, Bmw 7, would not bring success. Volvo should produce proper five meter long S90 and SC90 to compete MB E/Bmw5/A6 and CLS/A7/BMW6GC and that is maximum luxury territory for Volvo. For China Volvo could offer a new S90L.
 
#12 ·
The 7 isn't the flagship it used to be. The model was also hampered with technical issues. At the moment the 5, which has grown big, is more or less the flagship.
Same goes for Mercedes and Audi. The big high powered second in line models are more popular.

Volvo's very narrow future direction is a big reason they won't be popular with a larger car. A 4 cylinder isn't accepted for years to come. I'm also curious how the US market will do once the I5 and I6 are put to rest. That is if Volvo sticks with their plan to go I4 only.
 
#11 ·
Glad to read this, an S class sized Volvo was neither true to the brand or a recipe for success in my mind. The idea felt like an uncreative "me too" strategy pushed down Volvo's throat by their new owners which would have resulted in Volvo playing catch up with the Germans and never really being noticed. I think this new strategy of right sizing, Eco minded luxury and Scandinavian simplicity is going to help Volvo define its own interpretation of luxury which will strengthen the brand. And reading between the lines of this quote and others from Volvo the past couple of months seem to suggest that we are finally beginning to hear a common message from the brand as to where they heading, a united front and direction that was really missing the past couple of years.
 
#16 ·
Saying "at least an A7 or a 6 or CLS" isn't saying much considering how expensive they are and how closely they're priced to the full size sedans. The 6 Series Gran Coupe even has a starting price that's higher than a 7 Series. You might as well argue that Volvo needs a 7 Series competitor then.

From a design perspective it could be beneficial to take the Jaguar XF route, in a way. It hasn't taken the "same car but priced significantly higher" model that the Germans have taken (they're based on the A6, 5 Series and E-Class) and was widely regarded as a coupe-styled sedan when it first came out do to its design and shape. Simply focusing on an interesting design, rather than taking a car unnecessarily upmarket and making sacrifices would do well for Volvo. Halo for Volvo doesn't necessarily have to be expensive. Just create something incredibly beautiful. Creating a nice halo car that most people can't afford doesn't always help you out. The XJ is an incredibly nice car but Jaguar isn't exactly rocketing up the sales charts.

There's also the consideration that the A7, 6GC and CLS pretty much all sacrifice seat and headroom in the back for their design. I love that the A7 has the hatch but headroom is compromised and they're 4 seater sedans. Sacrificing functionality and practicality for design in such a direct way isn't fitting with Volvo's brand image, "Designed Around You".
 
#20 ·
Volvo doesn't have to jump right into the flagship segment right away. In fact, I recommend that Volvo works on a bunch of mid $40 coupes and convertibles that slot with the A5. That is a good gradual push into the luxury market. Volvo needs interest, and a big $80,000 car is a big risk because it doesn't have too much validity, but Volvo should be considering that as a goal. I say they start by creating some sexy 2 door vehicles to bring in appeal and the prices wouldn't have to be outrageous. This is a good first step outside the bread and butter segments.
 
#25 ·
I am acting rather defensive I admit. It's just that the idea of people thinking of Volvo as a brand, rather than individual products is really important, and I feel that a halo car would help improve that image. I feel like the S60, besides not using SPA or VEA cannot improve too much. The S60 package is already pretty sweet and people aren't getting it, because there is nothing else to look forward to.

The thing about the VW Phaeton is kinda true, but there are some differences. VW, the brand that makes the jetta and the rabbit, and other affordable cars, made a huge leap outside their traditional product offerings. The S80 is not too far from the Phaeton status, so it's not quite as difficult for customers to see the relationship between the products. Volvo is already covering a lot of the entry luxury segments. Plus the Phaeton did a little good. The VW Touareg came out in the same year, which is an expensive SUV. I feel like the Phaeton status rubbed off on the Touareg, giving it some credit for being so expensive.

What is Volvo planning after the new XC90, the new S80, S80 station wagon (name pending) and SPA VEA replacements to current lineup? What is Volvo doing? Are sales going to jump to 800,000 based on these changes?
 
#28 ·
The S60 package is already pretty sweet and people aren't getting it, because there is nothing else to look forward to.
Putting things in perspective, the S60 and XC60 do fine. No, they're not blockbusters, but if all of Volvo's product line was selling on par no one here would be worried about them. (Especially since it only has one body style.)

If all of Volvo's products were doing well it wouldn't really need a halo car so much. You would see more Volvo's around, so people wouldn't forget about them. Just look at the shoutout article from cars.com. The family interviewed to see what they would get ended up picking the Volvo, but they never would have considered that car if it were not presented to them.

I do think a fast polestar is model is good for the brand to get young people's attention. A good entry level car (what the V40 should be if it were here) would be great to get people initiated with the brand and look forward to moving up to something else later. The S80 needs to be a proper alternative to an E-Class and the XC90 needs its old glory. I think the V60 is great, but the wagon market is not there.

If Volvo had a fully competitive product line they would be doing fine and could then afford to move into the S-Class segment. Right now they can't and need to concentrate on rebuilding.
 
#26 ·
I get your idea about seeing Volvo as a brand. I also think Volvo wants to be viewed as a brand rather than individual products. The disconnect it seems is what that vision is. You clearly have a vision of what that should be and Volvo clearly has not followed that. It's possible Volvo's strategy will pay off once new product gets going but it's also possible they will need to backpedal and take a different route. That remains to be seen. It's very easy to compare them to the Germans since those brands are doing so well and any Volvo fan obviously wants similar success, numbers wise, for Volvo. I think fewer people are willing to sacrifice what Volvo stands for however in order to achieve that goal because many feel Volvo could be successful with their current position provided they actually provide quality, updated products that are competitive in features, quality and price.

From what I can tell, you believe a halo vehicle will make Volvo, as they are, more desirable. Others however think a halo vehicle of this type won't make Volvo more desirable as they are but will instead force Volvo to change what the company stands for (or the vehicle won't fit with Volvo's brand image and thus would be viewed as an individual product that doesn't make sense, rather than bringing the entire brand up with it).

Side note: As an owner of an S80 and a fan of the Phaeton, I can say that they are worlds apart. The S80 is a sub 5 series quality vehicle (not knocking it, I do love my car) and priced properly within the Volvo range while the Phaeton is an A8 with a VW badge and an Audi price tag.