Volvo today announced details of its plan to revive sales in the United States at the LA Auto Show, with the company promising a complete renewal of the product lineup over the next five years.
The plan also includes a renewed focus on its dealer network, the launch of world first engine and safety technologies, a new management team and increased marketing spending.
The Swedish automaker is confident it can reverse a 10-year trend of falling sales in the United States to around 100,000 cars a year in the medium term, compared to around 60,000 sales expected for this year. If that happens, it will bring Volvo’s performance in the U.S. into line with the strong sales growth it has seen in Western Europe and China.
“Volvo is in the US to stay. Not only will we stay, we will prosper. We have a plan and we are implementing it. We sold over 100,000 cars a year in the US in the past. Our initial aim is to get back to that level and in the longer term surpass it,” said Håkan Samuelsson, President and Chief Executive of Volvo Cars.
The complete renewal of the product range in the next five years begins with the all-new XC90 and V60 Cross Country, both on display in Los Angeles. Volvo also wants to strengthen the brand by doubling the marketing budget in the next year, by focusing on developing the dealer network and on managing residual values to ensure the long term value of its products.
The plan will be implemented by a new management team, which is already in place. The team will oversee the improvement of service operations and will aim to deliver real profit opportunities to the dealer network.
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