You may remember an older post we made regarding the possible US disappearance of Mitsubishi, Volvo and automotive publication Road&Track. The report / analysis we quoted argued that neither of the three (the only automotive-related brands out of their selected ten) had what it takes to continue Stateside, and it prophesized their demise within the next 18 months.
Our view was that they could be right regarding Mitsubishi and possibly even Road&Track, but Volvo was definitely not planning on leaving. Now, a WardsAuto report further strengthens that claim, with statements made by the brand’s North American president and CEO, John Maloney.
Contacted via telephone, he told the U.S.-based news site that they are only now just updating their range, with the swapping of some old models for their recently revamped equivalents.
In addition, Maloney revealed the Chinese-owned automaker’s intentions to increase their local marketing budget by 25 percent, adding that incentives are also going up, by 20 percent. Furthermore, the report states that many of Volvo’s over 300 dealerships have had lots of investments poured into them, ranging from the addition of new equipment for some, to others which have had “ground-up replacements” or extensive renovations.
The new range of efficient four-pot engines introduced by Volvo is another positive aspect for the Swedish brand, making their US presence that bit more secure.
Lastly, Maloney explained they need to fend off the competition better, and steer Audi and BMW buyers back into their showroom. He also revealed that they are not in direct competition with Mercedes-Benz, and that their pool of buyers is much more similar to that of the two aforementioned brands.
However, Mercedes is aiming for younger buyers, so they may still clash in the future.
By Andrei Nedelea
Note: Volvo XC60 R-Design pictured
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