Volvo has announced that will roll out a broad strategy in hopes of reviving itself in the U.S.
For the last decade, the Swedish automaker has seen shrinking sales in the U.S. while nearly doubling sales globally. Its plan includes new powertrains, new vehicles, more leasing and fresh marketing thanks to a new global ad agency. Automotive buyers will see the automaker’s new strategy with the launch of the redesigned XC90 crossover due late next year.
According to CEO Hakan Samuelsson, the pillars of the new Volvo will be attractive “Scandinavian” design, safety and environmental leadership while “clever functionality” will be seen in the state of the art infotainment systems. The automaker plans to boost global volume from a projected 450,000 units per year to around 800,000 before 2020. And since Volvo’s new owners are based in China, the country is expected to surpass the U.S. as Volvo’s largest market with a yearly volume of 200,000 units. Some Chinese-built Volvos could be exported to the U.S. in the future.
Volvo has yet to name the new ad agency that will spearhead its global campaign, but two agencies are vying for the account, though its current one, Arnold Worldwide, is not one of them. The automaker will also be focusing on lease promotions hoping to see its volume rise from 35 percent this year to around 40 percent.
As previously reported, Volvo will be revamping its powertrain lineup to offer new three- and four-cylinder gasoline engines with and without turbochargers. In addition, diesel engines based on the same architecture will be developed while the brand’s hybrids will use an electric rear axle.
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[Source: Automotive News]
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