Volvo will get a much needed boost when the all-new S60 sedan and V60 wagon arrive late this year and early next year.
Having charged a premium price over its German rivals in recent years -- at the expense of strong sales growth -- the Swedish car maker, finally, is planning to undercut its main opposition.
The S60 sedan and V60 wagon are expected to have a starting price that limbos under the $50,000 mark, which would undercut similarly-sized and equipped vehicles from Audi, BMW, and Mercedes-Benz – but still be dearer than equivalent Volkswagen models, including a new Passat model due locally next year.
For Volvo Australia, the new S60 and V60 can’t come soon enough given that it has spent this year effectively without a contender in the medium-size luxury market. Just nine Volvo S60 sedans have been sold in 2010.
As a result, Volvo’s sales growth of 9 per cent year to date in Australia is barely more than half the growth rate of the total new-car market (up 15 per cent).
Meanwhile Audi is up 22 per cent, Mercedes is up 16 per cent, and Volkswagen is up 23 per cent. Even BMW, which charges more for its cars than Volvo, is up 10 per cent.
“Price is yet to be announced but we are confident we will have a very competitive offer out there,” says Volvo Australia spokesperson Laurissa Mirabelli. “If you look at where the German cars are at we expect to be somewhere near them or slightly under them.”
Most of the German medium luxury cars start at or near the $50,000 mark.
Volvo has sold 3100 cars so far this year – a fraction of its German rivals – but the arrival of the new models will give it a head start to a strong sales performance in 2011.
The S60 and V60 range will initially be available in Australia with a choice of two petrol engines and two diesel engines.
A 2.0-litre turbo four-cylinder (149kW/300Nm) and 3.0-litre turbo six-cylinder (221kW/440Nm) will make up the petrol options – but a super-frugal 1.6 turbo four-cylinder petrol is also under consideration.
A brief test drive of this engine during the launch of the V60 wagon in Italy last week showed it to be a stronger performer than its modest engine capacity suggests.
A 2.0-litre five-cylinder turbo (120kW/400Nm) and a 2.4-litre five-cylinder turbo (151kW/420Nm) will make up the diesel options – but a new generation 2.0-litre turbo diesel could be introduced early next year.
In Australia all engines will be backed up by a six-speed twin-clutch automated gearbox that was developed by Getrag and the Ford Motor Company. It is similar to the Volkswagen DSG gearbox but gearshifts seem smoother, particularly at low speeds and when manouvring on hills at parking speeds.
Meanwhile, the recent Chinese takeover of the famous Swedish brand is unlikely to spark a series of cost cutting measures or affect the company’s focus on safety innovations, the car maker says.
“All the senior management are still in place, it is still very much a Swedish company,” says Mirabelli. “We have the same people in charge of design, development, engineering, safety systems and manufacturing, but we are now owned by a Chinese parent company.”
Volvo was bought by North American car maker Ford in 1999 for $US6.45 billion but the company was sold earlier in 2010 to Chinese car maker Geely for a song: $US1.8 billion. Geely plans to assemble some Volvo models in China to capitalise on the growing market there as well as upgrade the current manufacturing facilities in Sweden.
China overtook North America to become the biggest new car market in the world last year.
Volvo S60 and V60 fast facts (power/torque, consumption, 0-100km/h)
- 2.0-litre turbo petrol four-cylinder: 149kW/300Nm, 8.3L/100km, 8.4 sec
- 3.0-litre turbo six-cylinder: 221kW/440Nm, 10.2L/100km, 6.2 sec
- 2.0-litre five-cylinder turbo diesel: 120kW/400Nm, 6.1L/100km, 9.4 sec
- 2.4-litre five-cylinder turbo diesel: 151kW/420Nm, 6.4L/100km, 7.9 sec
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