Volvo Increasing XC90 Production to Meet Demand

Demand for the Volvo XC90 has exceeded the Swedish automaker’s expectations, so the company is ramping up production.

The automaker announced that it has received nearly 57,000 orders for the new SUV, outpacing the originally forecasted 50,000 figure. As a result, Volvo is now running three production shifts at its plant in Torslanda, Sweden, to meet demand.

The new XC90 is also catering to luxury buyers as, 76 percent of the customers are choosing the range-topping Inscription model. Built on Volvo’s new Scalable Product Architecture (SPA), the XC90 marks the beginning of a new chapter for the brand that was once expected to exit the U.S. market due to its financial woes.

SEE ALSO: 2016 Volvo XC90 Review

Sales as a whole are up for the brand, having sold 232,284 cars through the first six months of 2015. Last year, Volvo sold 229,013 units over the same period. According to the company, strong demand in Europe attributed to the boost while sales in China remained flat and sales in the U.S. have stabilized.

“It has been a good first half of the year, with an improved financial performance,” said Håkan Samuelsson, president and chief executive. “We have been implementing a transformation plan since 2010 and this financial result demonstrates that we continue to be on the right track.”

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