Like this site? Help out with a donation. Click here to find out more!

The New Volvo XC90 Will Boost Our Sales

Milestone on the journey towards 600,000 cars
Target for the first year: 50,000 Volvo XC90
65 percent sold in North America
Redefining the luxury SUV segment

The launch of the Volvo XC90 is an important part of Volvo Car Corporation's plans to achieve profitable growth year after year.

"The XC90 will boost our sales. It will take us over 500,000 units per year. A milestone on our daring journey towards the 600,000 mark", says Hans-Olov Olsson, President and CEO of Volvo Cars.

The initial worldwide target for the Volvo XC90 is 50,000 units. 65 percent of these vehicles will be sold in North America.

New record year in North America

2001 was the 3rd consecutive record breaking year in North America for Volvo Cars.

"We are aiming for 200,000 cars per year in North America by 2004. So far, we have been growing in the right direction. But we really need a SUV to close the gap to 200,000 and that is the role the XC90 is going to play", says Dan Werbin, President and CEO of Volvo Cars North America.

The medium premium SUV segment is young. It was born in 1997 with the introduction of Mercedes ML. Since then the BMW X5, Lexus RX300 and Acura MDX have grown the segment and they are the main competitors for the Volvo XC90.

The segment is also growing rapidly and it is predicted to pass the 250,000 mark by 2005.

"The new XC90 enters this segment with great confidence. Recent clinics show that the customers see an SUV as a natural step for Volvo. It also complements the Cross Country perfectly. They are different vehicles with different buyers so they won't compete about the same customers", says Dan Werbin.

Unique package - unmatched by competitors

"The new XC90 is also redefining the luxury SUV segment. It is the first in the next generation of SUV's. It offers a unique package, unmatched by any of our competitors", adds Hans-Olov Olsson.

According to Volvo Cars North America, the Volvo XC90 will:

Attract customers who reject the Volvo brand by adding SUV excitement and desirability
Attract customers who have rejected SUV's due to safety concerns
Attract customers who want seven forward facing seats in a Volvo
Retain present Volvo owners considering an SUV
Conquest Asian brand up graders and domestic switchers

Growing segment in Europe as well

In Europe, SUV's have traditionally been viewed as niche vehicles, but the acceptance has been growing during the last few years, stimulated initially by the newer small, 'car like' SUV concepts.

The European SUV segment has a high share of diesel engines and the grow this now extending into the large SUV segment. "We have a golden opportunity in Europe. The segment is growing and we enter the market with a highly distinctive product, an offer nobody else can match", says Hans-Olov Olsson.

Return to XC90 Articles - Discuss this Article in the Forums!