Volvo Aiming To Go Upmarket In To S-Class Territory

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Geely Automotive who reciently bought Volvo are going to develop a range topping large saloon to compete in the BMW 7 series and Mercedes S-Class territory.

Financial Times
Volvo’s new Chinese chairman wants to take the Swedish car brand upmarket and compete directly with BMW and Mercedes-Benz by building a large luxury saloon.

Zhejiang Geely Holding Group on Monday closed its purchase of Volvo from Ford Motor for $1.5bn in the biggest overseas acquisition yet by a Chinese company of an overseas carmaker.

Shufu, chairman of Volvo and co-chair of Geely, said: “At the moment we are competing with BMW, Audi and Mercedes, but we don’t have a product to compete with the BMW 7-Series and Mercedes S-class. We need to fill that gap”.

In the decade that Ford owned Volvo, it kept the brand from developing large luxury saloons – one of the industry’s most profitable segments, and popular in China – partly to avoid cannibalising sales of Jaguar, the UK brand it sold to India’s Tata Motors alongside Land Rover for $2.3bn in 2008.

Mr Li said Volvo had the technology plus the research and development capability needed to build a large luxury car and command higher prices for all its vehicles. He said: “In the Chinese market, people want luxury cars… luxury they see through their eyes and touch with their hands”.

Volvo’s new chairman added that the remarks were “my personal thought or idea”, and that the final decision lay with the carmaker’s new board, which met for the first time in London on Monday.

Hans-Olov Olsson, Volvo’s new vice-chairman who served as chief executive from 2000-5, said that the new board would next meet on September 14 to begin discussing a strategy.

Volvo has been successful in China with an extended-wheelbase version of its S80 mid-size executive saloon, of which it expects to sell about 15,000 this year. However, it has no comparable large model like the S-class or 7-Series.
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I think its a decient enough plan if they do it right, I can see it turning out something like the new Jag XJ only squarer ;). Thing is do people really see Volvo as a luxury brand? I always felt it lay in this grey area where people bought them for safety and it didnt belong to any particular 'class' so I find it hard to see why anyone would buy it if luxury and branding was the main thing on your mind.

Robin.
 
There's no reason they couldn't do it. The S80 is one of the most comfortable cruisers you can buy, so they know how to do luxury. The problem I fear, will be that people spending upwards of £50k on a luxury car are going to head straight for established brands, and while they do, the depreciation will be a killer.
 
Robin.
I think its a decient enough plan if they do it right, I can see it turning out something like the new Jag XJ only squarer ;).
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They aren't even properly square anymore - the new S60 being a perfect example of "non-Volvo" looks. It's a decent looking car in its own right but nothing in it screams Volvo like the models up to S70 and V70 MkI did.

The same thing has been tried before, in the late nineties there was a special model called S90 Royal. It had just about every luxury gadget of its day, it was large, it was comfortable, it was powerful enough. But it never really took off against the 7 series and the S class despite being just as good if not better. Because it was a Volvo and most people with that kind of money were buying a brand, not a car.
 
They have money, they can do R&Ds so why not? Even the S80 is actually one of the most comfortable mid-saloon that that you can get. The problem that I believe everyone can see with Volvo is the lack of the brand itself. Not really a luxury brand either I think... We have so less Volvo here compared to others like BMW, Mercedes and Audi. Even VW.

Even if they ever made the car, I wonder how well will it sells compared to it's direct rival of 7er, S-Class, XJ and A8...
 
I can see the logic to it if the main market aimed for is the Chinese one ( which is thirsty for luxury cars at the moment it seems ) and when the development costs are justified by that I can see them release it into Europe and the US as well.
Gunning for the 7-series and S-class is uncharted territory for Volvo in the same way it was for Volkswagen when they released the Phaeton ( which makes sense in a way to fill a small niche for those wanting a understated luxury car without all the associations of a luxury brand ).
If they mainly sold it in Europe and the US I wonder whether it will catch on enough to justify its development costs.
Without the restrictions of Ford deciding which brands filled a certain market and with new Chinese ownership I wondered where it would take Volvo as a brand identity.
As Greycap already mentioned the identity of Volvo right now is a bit "non-Volvo" as the transition of the plane, square and safe image to a new dynamic one may have gone a bit too far in my opinion.
And a clear and defined image is even more important going further upmarket.
 
Am I right in thinking people still buy Volvos because they are safe? Because that's still the opinion I hear bounced around unless you're talking about a C30.
 
ExigeEvan
Am I right in thinking people still buy Volvos because they are safe? Because that's still the opinion I hear bounced around unless you're talking about a C30.
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They still have that reputation despite other brands catching up quickly in recent years, hence why Volvo tends to focus more on other factors as well as they realise their "monopoly" on safety has long gone and to attract a new generation of buyers they also have to offer better or more modern styling ( debatable if it turned out that way ) and better handling cars.
They can't rely purely on brand loyalty build upon the safety reputation anymore but if they choose to go into a completely new direction they also risk alienating the loyal ( and slightly conservative perhaps ) customers they still have.
It's a tricky balancing act I guess but judging the current design direction they took there isn't much left anymore of the classic Volvo look.
To some that might be welcomed, but I worry that the peculiar classless niche the Volvo brand filled might be replaced by a me-too design language.
 
analog
Gunning for the 7-series and S-class is uncharted territory for Volvo in the same way it was for Volkswagen when they released the Phaeton ( which makes sense in a way to fill a small niche for those wanting a understated luxury car without all the associations of a luxury brand ).
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When I saw this news I also instantly thought 'Phaeton'. This Volvo will be exactly in this catagory where I guess you want understated luxury.

I don't really know how well the Phaeton is doing, I've seen about 3 in the whole time its been produced and although its good I cannot understand why anyone would pass up an A8. I can't think of any other example cars which are in this quirky group and I don't know if its in any way profitable.

I think Geely will have to make it undeniability Volvo through and through and really hammer across the brand to make it stand out. Although theres loads of market share to go around in China it will have to do something different. It will probably also have to be the safest large saloon on the market which will be hard against the S-Class. Time to bring out some new revolutionary safety feature like the SIPS system from 1991. Safety is still their trump card although its more a mindset than a reality these days and analog mentioned.

Just make it boxy Geely! ;)

Robin.
 
Awesome. I would love to see a new S80 reaching into M-B and BMW ring. I've been waiting for someone new to enter the luxo sedan market (You can say Porsche, but it's just strange looking). The new S60 looks sleek and quick, and comes with many of Volvo's city safety features, so I would love to see a S80 with the City Safety package, a 4.5L+ V8 and a base V6, and a nice interior to seal the deal.
 
Think it will have to be a S100 ( above the segment the S80 is aiming for ) to be a true S-class or 7-series rival which makes even a V12 powered Volvo a possibility I suppose.:)
 
Considering that the VW Phaeton exists, and apparently has done rather well in Europe, this idea gets a "Why not?" from me. The new S60 looks pretty awesome, and my understanding is that it is a bit of a return to form for Volvo. If Geely wants to spend the money, they need to know where to target. I'd peg it on the Hyundai Equos, Cadillac XLS and Jaguar XJ. I just can't see a Swede going after the Germans in any kind of serious way.
 
S10 would be the best name... S100 is kind of, weird?

S40, S60, S80... S10. Sounds owkey to me.

Terrible post! :ouch:
 
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That's like saying the 1 series should be the flagship of the BMW series or the A-class of Mercedes.

100 makes sense. Fact.
 
Owh my lord, what did I just said?? :confused: :dunce:

Yes true it shouldn't be S10... No way from S80 straight back to S10! S100 indeed make sense but it just sounds weird to me. Terribly sorry for the misleading :lol:
 
Why not just call it the S90?, there has already been a Volvo called that before as the range topper (the one Greycap mentioned) so they could in essence resurrect that model. Theres nothing wrong with that name. Heres some pics,

autowpruvolvos90royal1.jpg

s9007.jpg

20050103steeringwheel10.jpg


I love the leather embossing, Volvo 'BTW this leather is made by Hermes' :lol: ... incase you forgot this is a luxury car!

Robin.
 
Robin.
Why not just call it the S90?, there has already been a Volvo called that before as the range topper (the one Greycap mentioned) so they could in essence resurrect that model. Theres nothing wrong with that name.
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No... just no. The S90 deserves to go in history as the last "true" Volvo instead of giving its name to something Chinese. S100 would be a good choice because it would a) put it higher in the range than the S80, b) retain the "even tens for sedans, uneven for wagons" system and c) stop the estate version from becoming V90 which deserves the same fate as the S90.
 
Audi did it 20 years ago, and Lexus started with it 20 years ago. I don't see why Volvo can't do it either. They have a lot of work to do though.
 
Greycap
No... just no. The S90 deserves to go in history as the last "true" Volvo instead of giving its name to something Chinese. S100 would be a good choice because it would a) put it higher in the range than the S80, b) retain the "even tens for sedans, uneven for wagons" system and c) stop the estate version from becoming V90 which deserves the same fate as the S90.
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Geely have retained the production lines in Sweden, especially for the high end models such as in Torslanda where most of the range including the S80 is assembled and probably where this will be.

Also I'm sure the design & development team is still Swedish so I don't see what would be Chinese about it other than the company which owns it.

Its like saying that the Phantom is no longer a true Rolls Royce and shouldnt carry the historic name which I don't feel is true because its still done to the same standards and ideals of the original brand and its built mostly in the UK.

But I do understand the naming conflicts with the current range of cars, with the V90 and XC90 names it might be confusing. On another note they could also do with a T5 edition of this future car to compete with the AMG stuff!

Robin.
 
Robin.
On another note they could also do with a T5 edition of this future car to compete with the AMG stuff!
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Well, if it has a V8 in it, Volvo can't make a T5, because the T5 nomenclature means Turbo Inline-5. How about they just use the R-Design thing like on the C30.
 
GT_Prologue5
How about they just use the R-Design thing like on the C30.
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But that sounds wordy and rubbish!

There's no oomph to 'R-Design'! In fact, when I say it out loud, it sounds like I'm saying 'Our Design'.

What about just S100R? Like they did with the S60R?
 
Yeah it'd have to be an R car. The hottest Volvos have had R names lately iirc. T5 was a step below I think.

I donno if it would compete with AMG and M and RS stuff anyway. Volvo is quite a long ways from those standards with all of their other cars.
 
Greycap
They aren't even properly square anymore - the new S60 being a perfect example of "non-Volvo" looks. It's a decent looking car in its own right but nothing in it screams Volvo like the models up to S70 and V70 MkI did.

The same thing has been tried before, in the late nineties there was a special model called S90 Royal. It had just about every luxury gadget of its day, it was large, it was comfortable, it was powerful enough. But it never really took off against the 7 series and the S class despite being just as good if not better. Because it was a Volvo and most people with that kind of money were buying a brand, not a car.
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A guy who comes into where I work is employed by CT's Own Volvo here, and he told me that the running joke is that Volvo used to design cars with a ruler. Then they dropped it, and now the ruler is bent.

I really don't think there's any harm in trying. Maybe give it a name like the E90 ( E as in "Executive" ).
 
Problem is people won't buy big Volvo saloon/sedans. Estates have always been our forte all you need to do is look at the non-sales of the S80, Even our new CEO Jakoby drives the V60!!
 
Philly
Yeah it'd have to be an R car. The hottest Volvos have had R names lately iirc. T5 was a step below I think.

I donno if it would compete with AMG and M and RS stuff anyway. Volvo is quite a long ways from those standards with all of their other cars.
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Just add another R to make it a little... mmmmmmmmm... extreme
 

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