Volvo gets emotional

The global boss of Volvo has admitted the Swedish brand must add more emotional design to its strong reputation for safety if it is to succeed in virtually doubling sales to 800,000 per annum by 2020.

Hakan Samuelsson, CEO of Volvo Car Corporation, also nominated a complete overhaul of the Volvo line-up and the addition of a compact SUV as key goals for Volvo, along with a fundamental improvement in the way it services its customers.

He was speaking at the Frankfurt motor show, where the Chinese-owned Swedish manufacturer has revealed its new design language via the Concept Coupe.

It is the first of three concepts to be developed under the direction of new chief designer Thomas Ingenlath and the company says it hints at Volvo’s next all-new production car, the second-generation XC90 SUV, which launches in late 2014.

“I think we have to complete the safety image with something else and that’s why we showed the coupe here today,” Samuelsson said.

“It is bringing emotions into the brand. Design is one thing and we show with this coupe what could be done, what type of design and forms and design language you could expect with a new Volvo.”

Samuelsson has a mountain to climb to achieve the company’s ambition, as Volvo sales have slipped globally by six per cent in the first half of 2013, while its financials have also dropped into the red.

The Concept Coupe is based on Volvo’s new Scalable Product Architecture (or SPA), which will underpin all models in the range from the S60/V60 upwards.

SPA is being hailed as a significant step forward by Volvo for its design capabilities because it shakes it free of former owner Ford’s corporate architectures, providing a more aggressive stance enabled by a longer dash to axle ratio, the one measurement that will be the same across all SPA models.

The Concept Coupe also showcases Volvo’s engine downsizing commitment to four-cylinder engines and electric motor assistance. Three-cylinder engines are also on the way.

A second architecture, dubbed CMA, or C-Segment Modular Architecture, will be shared with owner Geely and underpin future smaller vehicles including the potential compact SUV, dubbed by some as the XC40.

Samuelsson was prepared to nominate this model when asked if Volvo’s product portfolio required expansion to hit the 800,000 target.

“The first step is replacing all of the things we have and I would say if we should have one more car it is probably a smaller SUV, which I know is on the CMA wish list. But we are talking about the second wave after the SPA.

“I think the market is moving in that direction, more and more smaller premium cars, smaller families demographically and we have to be there with smaller premium cars. The V40 is a good example but it is only a hatchback.

“I think you could imagine a small SUV. You can imagine a small sedan also,” he said.

Volvo starts a renewal of its current product line-up with model year 2014 updates including significant navigation and connectivity improvements in the next few weeks. But every existing larger model will be replaced within the next few years.

“The V70 and S80 have to be replaced next step (after the XC90), then the XC60, S60 and V60. In two or three years all present … will be replaced by SPA vehicles.

Samuelsson cited two new Volvo service initiatives – “personal technician” and “one-hour stop” – as examples of the way it was trying to improve its customer relationship.

“These are things that Volvo realistically should also work with. It doesn’t require billions in investment but could be very much in-line with our designed-around-you human-centric brand.”

One-hour stop is currently on trial in Australia and is expected to gradually roll out though the entire local dealer network.

Volvo Car Australia will launch facelifted versions of the XC60 SUV, S60 sedan and V60 wagon locally next month.

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