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Volvo Prepares for India Invasion
Volvo Cars, the Scandinavian luxury division of the Ford Motor Co., is lining up many product launches for India. After the S80 sedan and the XC90 sports utility vehicle, expected by the year-end, the automaker also is finalizing the lineup of its other luxury offerings.
“The logical thing would be to bring in another sedan. We haven’t decided on the model yet, but it could be S40 or S60. We are also considering bringing in hatchbacks - C30 and C70. Our new SUV, due in 2009, could be also brought-in here,” Paul de Vojis, the managing director of Volvo Car India, said. Market watchers say Volvo may not bring in the S40 since it shares the platform with the Ford Focus, which is also slated for an India launch.
For decades now, Volvo has etched a distinctive image connected with the terms safety and sensibility. According to critics, the previous product lines may look a little boxy but they were durable and dependable. But Volvo has moved on…
Gone is the ‘boxiness’ but the Swedish automaker has retained safety and durability attributes. These attributes can now be enjoyed in India. Enthusiasts there could have and hold the new S80 and the XC90.
The 2007 Volvo S80 sedan rolls into the driveway with a level of graceful appeal, rugged power and comfy luxury – something new from the practical Swedish automaker. The S80 holds its own against this strong competition. Critics say the car does not match them for performance or exhilaration, but the Volvo's flowing form and emphasis on safety will draw buyers.
Sticker prices also increased to a new level. This is the automaker’s way of pushing the midsize sedan into direct competition with luxury-performance models like the Audi A6, BMW 5-series, Cadillac STS and the Mercedes-Benz E-class. MSRP for the new Volvo S80 is $38,705 for a front-wheel-drive model powered by Volvo's 235-horsepower straight-six engine. An all-wheel-drive model powered by a 4.4-liter 311-horsepower V8 comes with a base price of $47,350.
The Volvo XC90 is based on the Volvo P2 platform which is shared with the Volvo S80 and other larger cars from the automaker. It is Volvo's top-selling vehicle in the U.S. accounting for about 25 percent of the company's sales. The crossover was launched simultaneously as the Infiniti FX and the Porsche Cayenne.
The XC90 features the 4.4 L Yamaha V8 engine produces 311 horsepower and 325 ft·lbf of torque. The XC90 V8 will be priced at just over US$45,000 and it is expected that more than 15,000 would be sold annually. Currently, the crossover is produced at Torslanda plant in Sweden.
The new models, wrapped with innovative in a sleek and attractive body, sport the durability of Volvo S70 parts and the restrained elegance that is Scandinavian.
In spite of Volvo Cars India operating as a division of Ford India, Vojis said that Ford would have no say in pricing, marketing, network selection or product introduction. “We will take Ford’s support in back-office operations like HR (human resources), homologation, IT, logistics, and accounting, but Volvo Cars would remain responsible for products, pricing, and marketing,” Vojis said.
Volvo Cars intends to import the cars as CBU (completely built units) and has no plans for any local assembly. In China, where it has lately set up an assembly unit, the company sold about 8,000 units in 2006. A similar volume demand will rationalize the need for a plant in India.
The Swedish automaker is entering market with three dealers in Delhi, Mumbai, and Chandigarh. “It is our deliberate strategy not to start with 12 cities at the same time. Moreover, these three cities represent more than half the country’s potential,” Vojis noted.
About the Author
Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. she is a native of the motor city and grew up around cars hence her expertise in the automotive field.
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