Volvo re-aligns local model mix to kick off 2006

Volvo Cars Australia has unveiled a re-jigged model line-up including new model variants and keener pricing to kick start the New Year.

Top of the list are new AWD variants of the S40/V50 T5s along with repositioned (read: cheaper and/or better equipped) S40/V50 and S60/V70 models. Some of the variants represent price decreases of close to $10,000. Interested? Read on...

New for 2006 are the S variants of the S40 and V50 twins. Volvo's entry level cars, the compact sedan and wagon have won praise in the past for their good road manners and up to date design.

According to Volvo, the S40 S and V50 S: "sharpen the value position for its sedan and wagon range."

The S models replace the 2.4i and represent only minor equipment changes save for the inclusion of standard automatic transmission. Further the S40/V50 SE variants will now be called LE. Again automatic transmissions are now standard with manual shifters a no cost option on all S and LE S40 and V50s.

Priced at $39,950, the S40 S represents a $8000 saving over the outgoing auto-equipped S40 2.4i. Likewise the V50 S wagon at $42,950 is also $8000 cheaper than the V50 2.4i auto. The LE models are $5000 cheaper and identically equipped to the SE's they replace.

Still in the S40/V50 segment, the performance flagship 162kW T5 now gets all-wheel drive, an equipment upgrade and a substantial price decrease. Formerly priced at $59,950, the S40 T5 hits the streets in five-speed auto or six-speed manual form priced at $54,950. The V50 T5 wagon variant (pictured) also drops $5000 to $57,950.

Aside from the performance enhancing Volvo-Haldex AWD, equipment upgrades for model-year 2006 T5s include heated front seats, self-dimming interior mirror, six-stacker in-dash CD changer, 12-speaker Premium sound system, and larger disc brakes. According to Volvo this represents a value repositioning in excess of $9500.

Moving up the model range it's worth noting that Volvo's performance flagships, the S60R and V70R, found no buyers Down Under in 2005. According to Volvo's Todd Hallenback, the maker imported no 05 models of either variant last year, selling only the handful of 2004 build cars it had in stock.

Also gone, pending the launch of a new model early this year, is the S80 T6 range-topper. Volvo's XC90s and XC70s SUVs and S80 2.5T continue unchanged.

All is not static in Volvo's larger car arena, however. The V70 LE wagon rejoins Volvo's MY06 model range at $52,950 powered by a 125kW, inline 2.4-litre five-cylinder engine with five-speed auto.

The LE also gets leather upholstery, leather steering wheel, power driver's seat with memory, wood interior inlay, 60/40 split rear seat with luggage net, in-built child booster cushions, IAQS cockpit air filtration system, and premium sound system.

Finally, in keeping with the value and specification adjustments to the S40 sedan range, the larger S60 LE and S60 AWD also receive attention. The S60 LE is now priced at $49,950 (was $56,950)  while the 154kW, turbocharged 2.5-litre S60 AWD is realigned at a $9000-cheaper $59,950.

Volvo grew sales by a scant 3 per cent Down Under in 2005 despite the strength of the XC90 and XC70 in the burgeoning SUV marketplace.

The maker's range will be boosted with the arrival of an all-new C70 (also pictured) later in 2006 (it will be debuted Down Under at the Melbourne Motor Show in February), however, this pricing reallignment reflects the quandary brands like Volvo and fellow Swede, Saab, find themselves in the local market.

Without the brand cache of the likes of BMW and Mercedes-Benz, it seems likely that Volvo, Saab, and brands such as VW and the French marques will more and more find themselves 'shopped' against the high-value Japanese brands such as Honda and Mazda. That's good news for consumers in the short term, but only while each of the marques can find enough buyers to remain viable.

It is worth considering the fact that in 2005 BMW sold more 3 Series than Volvo and Saab sold of their entire combined ranges.

Pricing for the revised Volvo Cars Austrlia 2006 model line-up follows:

Sedans

Wagons