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 |  Aug 04 2010, 10:05 AM


With ownership of Volvo now having officially changed hands from Ford to Geely, the Swedish automaker will look to develop a plan for profitability and growth. And while it’s domestic rival Saab is looking down market, Volvo will reportedly head in the opposite direction, instead planning a new flagship model that would compete directly with the likes of the BMW 7 Series and Mercedes S-Class.

At a press conference following Geely’s takeover of Volvo, company boss Li Shufu actually said as much, stating that he wants Volvo to make “high level cars that compete with the Mercedes S-Class and BMW 7-series”. Shufu also said that Volvo has the technology and resources to make this plan a reality.

Not only would a model in this range command higher prices, but it would also create higher profit margins. But without sharing a platform with another model the expensive R&D involved could make seeing a profit with a flagship Volvo difficult. That is, unless Volvo can manage to sell a significant number of the cars. And while high sales volumes have never been part of Volvo in the past, it’s ownership by the Chinese (now the world’s largest auto market) could change that.

[Source: AutoCar]