07/07/2008, 10:46 AM

Ford News

Volvo planning to move upscale amid sale rumors

Question marks continue to surround the future ownership of Ford’s Volvo brand, but that isn’t stopping the Swedish automaker from setting some lofty goals of moving the marque further up-scale to compete with the likes of Mercedes, BMW and Audi.

“We want to continue to compete with Mercedes, BMW and Audi,” Steven Armstrong, Volvo’s COO, told Automotive News. “We’re working to improve the premium-ness of the brand and our products.”

Armstrong’s claim could back up Ford’s story that it has no plans to sell the Volvo brand in the immediate future. If Volvo could move up-scale to compete with the best German brands, Ford would be able to fetch a much higher price for its last remaining PAG brand.

The transition to a top-tier luxury brand would also take several years, which would allow the auto industry to rebound from its current state of decline and ultimately give Ford a bigger payday if and when it decides to sell Volvo.

Although Armstrong didn’t give full details on Volvo’s plans to move up-scale, he didn’t indicate the move would mean fewer Volvo models. More technology will also be part of the shift, with many Volvo models slated to get stop-start functions and brake-energy regeneration in the next year and a half.

Volvo’s plan to move upscale seems like a difficult proposition, but is certainly more realistic than Acura’s plan to compete with Bentley and Maybach.

 
 

07/07, 10:53 AM

posted by:

cookie4me

that would be disasterous in today’s market. Do they have no imagination?

07/07, 11:01 AM

posted by:

snoboardguy21

They’ll need to make some serious steps toward RWD/AWD to seriously compete. I love the S40, but the small FWD powertrain means I’ll stick with my 325i.

07/07, 11:03 AM

posted by:

tino

I’d say to dowgrade to a level of scion…very hip Swedish teenagers :-)

(-Tino has spoken-)

07/07, 11:04 AM

posted by:

xyunya

I give Acura higher probability on competing with Bentley then Volvo with anything but Ford and WV. Until somebody buys off Volvo from Ford and Volvo bits stopped being used in cheaper Fords, Volvo does not have a prayer. Or’ yeah they can compete with Chevy laden Saab.

07/07, 11:22 AM

posted by:

howsmydriving

Oh great, just what we need, more expensive FWD cars.

07/07, 11:28 AM

posted by:

drchiem

Acura can’t even competing with LEXUS or BMW. Sorry buddy you are way too high for Acura. Don’t forget to mention Nissian/infinity, they been pushing every automaker to the limit.

07/07, 11:37 AM

posted by:

mayer_ray_nagin

Brandsnobbishly speaking, I personally put Volvo at about the level of crApura and Buick.

Then again, I don’t care because brandsnobs are just whackjobs with a severe inferiority complex.

07/07, 11:42 AM

posted by:

ben001

With Jaguar out of Ford it only makes sense for Volvo to take its place. And i think it can happen very soon. Just need some upgraded engens and a better drive. My ‘98 S70 2.5T drives better then a ‘03 Lexus GS430!

07/07, 11:51 AM

posted by:

johnnycanuck

And where would that leave Lincoln? Although judging by their latest offerings they seem determined to sew up the octogenarian demographic.

07/07, 11:58 AM

posted by:

xyunya

drchiem, I gave Acura higher probability, at no point did I stated that I believe it will ever occur. It must be word “probability” that threw it off for you. Sorry, I will try words in the future without collegial connotation.

07/07, 12:25 PM

posted by:

tripleonefive

Well good for Volvo I noticed that they have some great product With the death of Mercury Volvo should have a good position if they stay with FoMoCo.

I don’t know how this thread turned to Acura but I’ll run with it
When the NSX and the next RL come out it will have Lexus shaking in their spaceboots lol
BTW I have been seeing the new TSX around and I definitely like it. I didn’t realize how large it is. I looked up the specs and realized it is about the size of the current TL meaning the 09 will have to move up in size.
I cant wait to see the final product later this year

07/07, 12:27 PM

posted by:

sayit105

Well, it’s not even clear what this means. First off, I don’t think BWM and MERC are really the same thing. Audi and BWM seem to have more in common, okay. But the engines in these cars are so superior to what Volvo offers. And I guess Acura and Lexus don’t count…. I would think they’d go in the opposite direction, going toward fuel consumption, since their cars don’t boast high numbers. Whatever. Who knows with these companies. You tell them to look up and they look down.

07/07, 12:39 PM

posted by:

RaineMan

I can’t see Volvo competing with any of the premium brands like Lexus, Infiniti, Mercedes, or BMW. I think cheaper models would suit them better. Keep the emphasis on safety… but add an emphasis on fuel economy.

Maybe Saab and Volvo need to get together… they might have a chance at manufacturing a competent vehicle between the two of them.

07/07, 12:52 PM

posted by:

Carwatcher

Volvo does not have the “image” to compete with BMW, Audi, and Mercedes.

07/07, 1:13 PM

posted by:

jonmiles

Volvo’s interiors are way to ****ty to compete with Audi

07/07, 1:26 PM

posted by:

TomF

Idiocy. If Volvo can “own” a Euro near-luxury niche that slots them above VW, below Mercedes, and against Acura… why abandon that safe territory to go against Benz, BMW, and Audi? They’ll never succeed against the Germans thanks to indifferent Volvo build quality and the curse of the Ford low-rent parts bin.

I’ll never understand why carmakers feel compelled to pass up guaranteed success in favor of strategies with long odds. It’s like William Shatner passing up acting for singing.

07/07, 3:32 PM

posted by:

johnnycanuck

Have you seen Shatner lately? His biggest problem is passing up seconds at the dinner table.

07/07, 4:43 PM

posted by:

xyunya

johnnycanuck, that’s what I am talking about: we need bugger not smaller cars :) . That’s why they grow larger.

07/07, 7:14 PM

posted by:

frankhoffy

It would be smarter for Volvo to offer true R versions of all of their cars instead of the ridiculous “R-design” models

07/07, 10:28 PM

posted by:

Fromes

lol, wait did I just read that right? acura as a plan to compete is maybach and bentley? thats a joke right?

07/07, 11:54 PM

posted by:

02WRXPSM

Have any of you ridden in or driven a real Volvo, in the last year? I mean the ones built in Sweden, not the Ford-tampered models. The interiors are extremely nice; the cars are comfortable, with good sight-lines. I have a co-worker with an S60 that is loaded out (leather, nav, sunroof, 2.5turbo motor, 6 A/T, etc.) and it could easily compete with low-end Mercedes and BMWs. It won’t compete in power or torque, due to the tiny mill, but still — not so far-fetched. Ford has not ruined Volvo as completely as you might think.

07/08, 3:45 AM

posted by:

Veda

By continuing to compete I hope they meant staying competitive in pricing.

 
 
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