Volvo Prices to Increase as Brand Moves Upmarket

Volvo Prices to Increase as Brand Moves Upmarket

Get off the fence soon if you’ve been thinking about buying a new Volvo. Prices are about to take a hike.

At least that’s the plan according to CEO Hakan Samuelsson, who told Automotive News that the company will need to price its products closer to German luxury brands. Expect the redesigned XC90 crossover to be affected by a planned price hike first when it arrives in 2015.

Volvo found itself stuck as an in-between brand with prices lower than most others in the luxury segment, but too high to compete against similarly-sized mass market products. Sales in the U.S. dropped six percent through the first eight months of the year to 44,005 units.

Long a brand admired for its dedication to building safe cars, Samuelsson also admitted last year that he thinks the company’s cars are sometimes too complicated for many of its owners.

During the Frankfurt Motor Show, Volvo unveiled the first of three concept cars meant to preview its coming design direction. Called the Concept Coupe, it pays homage to the P1800 of the 1960s and is powered by a plug-in hybrid powertrain.

[Source: Automotive News]