Volvo CEO Stefan Jacoby has announced that their plans for a flagship sedan to compete with the Mercedes-Benz S-Class and BMW 7-Series have been put on hold, and may be dead altogether.
“It is not in our midterm or long-term strategy right now,” CEO Stefan Jacoby said at last week’s Shanghai Auto Show. “That has been decided.”
Jacoby said that Volvo is preferring to concentrate on their core products rather than move upscale. Volvo is spending $11 billion to invest in new products and as many as 2 Chinese assembly plants over the next 5 years. The new plants would be a means of boosting sales in China, where Volvo hopes to sell 200,000 cars per year by 2015, but some capacity could also be exported.
[Source: Automotive News]