Volvo Will Axe S40/V50 duo from US Line-up Due to Poor Sales

Volvo will stop selling its mid-size sedan, the S40, and its station wagon “twin”, the V50, in the USA during the 2012 MY. The reason? You guessed it; poor sales. According to Volvo spokesman Dan Johnston, US deliveries of the two models were disappointingly low with the S40 down 29% in 2010, while the V50 fared even worse, with its sales dropping by more than 50%.
"It seemed American buyers weren't looking for that kind of product and for us as a car company, it's not profitable to sell something that has a declining market share”, Johnston told Autonews.
Since the V70 was also discontinued last year, that leaves Volvo with a US line-up consisting of the C30 hatchback, C70 coupe-cabriolet, S60 sedan, the S80 sedan, the XC60 SUV, the XC70 (the only station wagon) and the XC90 SUV.

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Volvo S60 and XC60 R-Design 2012

At the 2011 New York Auto Show, Volvo announced that the 2012 S60 R-Design sedan and XC60 R-Design crossover will receive significant horsepower and torque increases when they go on sale in the U.S. late this summer.

Both the S60 and XC60 R-Design models are powered by Volvo's most potent six-cylinder unit, the turbocharged T6 engine. Thanks to a series of upgrades, the T6 in the 2012MYs produces 325 horsepower and 354 lb-ft (480 Nm) of torque, an increase of 21 horses and 29 lb-ft (39 Nm) of torque compared to 2011 R-Design models. Maximum torque is now achieved from 3,000 rpm and remains available throughout the rev range.

Power is transmitted to all four wheels via Volvo's second-generation six-speed automatic Geartronic transmission with sport mode with new valves and lower friction for faster gear changes.

The S60 and XC60 R-Design models are offered as standard with Volvo's Instant Traction and Corner Traction Control system with torque vectoring.

"The jump in performance will re-define these two R-Design models. Along with styling and suspension features that set them apart from other versions, our two newest R-Design models will have a higher 'fun-to-drive' quotient. I see that as a positive thing, and so will car buyers," said Doug Speck, president and CEO of Volvo Cars of North America.

Visually, S60 and XC60 R-Design models remain unchanged from the 2011 model year. The 2012 S60 R-Design is priced in the United States at $42,275 (€29,050), while the XC60 R-Design starts from $43,150 (€29,650).

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Volvo Reduces Price of Entry-Level C30 to £15k

There’s less to pay for UK buyers looking to get into a Volvo C30 sport hatch as the Swedish automaker announced a significant £1,300 price cut to the entry-level model which now starts from £14,995 on the road. The C30 ES features a 2.0-liter petrol engine with 145HP and comes equipped with electronic climate control, 16-inch alloys, leather steering wheel and gearlever, a stability system (DSTC), power windows, information centre, and a CD player with auxiliary input.
In the UK, the C30 is available with a variety of petrol and diesel engines ranging from the 145HP 2.0-liter petrol to the 230HP T5 and 115HP D2 to the 177HP D4, as well as a choice of trim levels including the sporty R-Design.

Volvo Reduces Price of Entry-Level C30

There’s less to pay for UK buyers looking to get into a Volvo C30 sport hatch as the Swedish automaker announced a significant £1,300 price cut to the entry-level model which now starts from £14,995 on the road. The C30 ES features a 2.0-liter petrol engine with 145HP and comes equipped with electronic climate control, 16-inch alloys, leather steering wheel and gearlever, a stability system (DSTC), power windows, information centre, and a CD player with auxiliary input.
In the UK, the C30 is available with a variety of petrol and diesel engines ranging from the 145HP 2.0-liter petrol to the 230HP T5 and 115HP D2 to the 177HP D4, as well as a choice of trim levels including the sporty R-Design.

Volvo to Build New Car Plant in China

At a press conference held earlier today in Beijing, Chinese-owned Volvo Cars announced plans to build a new plant in the city of Chengdu and continuing investigations for a second factory in Daqing, in north-eastern China. Volvo said that the deal is still pending approval from the Chinese government.  

"We regard the Chinese market as the second home market for Volvo Car Corporation and a very important part of the plan to build a successful future for the company," said Stefan Jacoby, President and CEO of Volvo Car Corporation.
The Chengdu assembly plant will only build Volvo cars and have an initial output of around 100,000 cars annually, with production estimated to start during 2013. Volvo said that the decision to expand in China will not affect operations and employment in Europe.
"We will build an entirely new plant in Chengdu and further investigate the opportunities for establishing an additional factory in Daqing," said Jacoby. "Our production in China will, however, not have any impact on decisions affecting capacity utilization of our plants in Sweden and Belgium" says Stefan Jacoby.
The Swedish automaker, which was acquired from Ford by China's Geely in 2010, also announced that Shanghai will serve as Volvo Car China's headquarters and centre for product development, design and sourcing. "Among other priorities, Volvo Car China will also support Volvo Corporation R&D in Sweden regarding the development of electric vehicles and hybrids," the company said in a statement.
"The Volvo Car China Technology Centre in Shanghai will develop into a complete product development organization on an international level," said Freeman Shen, Volvo Car Corporation SVP & China Operations Chairman. "It will have the competence and capacity to work together with the HQ in Sweden, participating in Volvo Car Corporation's work process for developing entirely new models."
Volvo said that it plans to increase its business presence in the China and aims to reach a sales volume of about 200,000 cars a year in the country by 2015. The company's global retail sales during 2010 reached 373,525 (an increase of 11.2 per cent compared to 2009), with only 30,000 of those sold in China.

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