Diesels are a growth opportunity for Volvo
From the doldrums a couple of years ago, Volvo's sales are setting sailStuck in a virtual Sargasso Sea of flat sales just a few years ago, Volvo has hoisted the spinnaker and spliced the main brace -- whatever that means.
The spinnaker in question is the XC90, which contributed nearly 1700 units of Volvo's 4000-strong sales last year.
Plainly the large 4x4 has been a real success story for Volvo, although sales have had to build over a period of time.
Currently, Volvo is very dependent on sales of the XC90 (more here) and any setback in supply of this vehicle has the potential to make a dent in the company's sales total in any given month.
Just ask Todd Hallenbeck, Volvo's Public Affairs Manager.
Mr Hallenbeck, commenting on Volvo's recent sales said "June was on track to be a big month, but we had a few issues with supply of XC90. We couldn't get them out of the factory. And that will hold us back a little bit this month.
"May was the biggest month we'd had in twelve years" Mr Hallenbeck said, implying that inventory of the XC90 had run low in May, leaving fewer opportunities to sell the vehicle in June.
Therefore, part of the 'supply' problem may actually be a 'demand' problem, since about 50 per cent of XC90 sales are diesels.
Diesel is very much in favour now among Volvo buyers, although there are still plenty of prospects to sell more cars with compression ignition engines.
"When we launch the new XC70, we expect…maybe as high as 60 to 70% to be D5" said Mr Hallenbeck.
"In the smaller cars, S40/V50 range, about 5% of our sales are diesel -- which is significantly higher than what diesel cars are for the total industry.
"I think diesel's got a long way to go. Just the average consumer still needs to come to mental grips with what is offered."
"The only real negative that we're fighting now is just trying to get some of the petrol companies to clean up their pumps.
"And a lot of them are moving their diesel pumps in the forecourt. They're well lit, they're cleaning them up, because they realise the market wants that."
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