The 90 series of cars have helped bolster Volvo sales.
Volvo Sales Are Surging as the Company Celebrates 90 Years
Volvo sales are surging, and the company is pumping out head-turning vehicles. It wasn’t that long ago Volvo and Saab were vying for the honor of the top Swedish automotive brand.
We all know the painful death Saab suffered – it still gives me nightmares. Most people wouldn’t have predicted that Volvo would end up on its current triumphant trajectory.
But here we are. As Volvo celebrates 90 years since its first car rolled off the assembly line in April 1927, they have a lot more to be celebrating.
Volvo Sales Surging
Last year, Volvo sales topped well over half a million vehicles worldwide. That set a new record for the brand. In fact, the Swedes have been setting annual sales records since 2014, and fully expect to do it again this year. People are lining up to get their hands on more than just the XC90, the vehicle that started this revolution.
With huge Volvo sales come big spoils, and that makes the automaker a growing danger to the Germans and others. Not only is the Swedish automaker selling more vehicles, it’s making more on each one. For 2016, the profit margin was 6.1 percent, surpassing the 4 percent it achieved in 2015. That’s a huge jump.
Volvo’s not satisfied with those impressive figures. The company goal is to hit an 8 percent profit margin by 2020. As for global sales, they need to surpass 800,000 vehicles. That might sound tricky, but Volvo has plenty of cars left up its sleeves to achieve those lofty goals.
The War Chest
In case you missed it several years ago, China-based Zhejiang Geely Holding saved Volvo from a fate similar as Saab’s. At the time, Ford had absolutely no idea how to help the Swedes, having also mismanaged Aston Martin and other European brands.
Since then, Volvo’s transformation has been something to behold. One of the things the Chinese have done is provide a tremendous financial resource.
Volvo has been able to engage in all kinds of research and development that previously were out of reach. The automaker always had the engineering might and know-how, but now it has the money to make it all happen.
The other thing that’s come out in interviews over the past few years is the difference in how Ford managed Volvo, versus Geely. The Blue Oval wanted to control just about everything Volvo was doing, including how parts were distributed to dealerships. That turned out poorly.
Now, Volvo management has a pretty long leash. They’re empowered to build a growing arsenal of vehicles to take on the likes of BMW, Mercedes-Benz and Audi.
The Next Level
Make no mistake about it, Volvo’s pushing upmarket. The Swedish automaker isn’t shy about admitting it’s gunning for the top luxury brands, no longer content to be a near-luxury brand.
The increasing sophistication is most obvious in the exterior design of Volvo’s new crop of vehicles. So far, we’ve seen the modern design language affect each 90 series model, and now the XC60. It really turns heads.
Inside, refined cabin details and materials, as well as the tech offerings, add another layer of class. Add to all that a cool, simplistic design like only the Swedes can pull off, and you have a winning combination.
Volvo’s powertrain technology also helps push Volvo to the next level. Instead relying on what’s worked in the past, mainly efficient turbocharged four- and five-cylinder engines, things have changed in a big way.
Advanced designs mean big power from turbocharged four-cylinders, while plug-in hybrid powertrains are available for every recently redesigned vehicle.
Naturally, Volvo is pushing forward with innovative safety designs and features, with numerous near-autonomous technology to help the driver.
Covering Bases
Volvo has been taking a comprehensive approach to products. Instead of just producing an SUV or sedan based on some models, with a wagon for others, the automaker is rolling out a very thorough product line.
We can see what’s coming down the pipeline by looking at the current 90 series crop. You have the crossover model, which is something consumers just can’t get enough of these days. But not everyone loves crossovers, which is why Volvo also has a sedan, a lifted sedan and a wagon in the mix.
We will see this kind of diversification with the 60 and 40 series vehicles. That means you can find the crossover, sedan, lifted sedan, or wagon that’s just the right size, instead of settling for something bigger or smaller than what you want.
A Continuing Trend
At least for now, Volvo’s current upswing doesn’t seem to be slowing down. Instead, all signs point to it continuing or even increasing.
If you haven’t been seeing many newer Volvos in your neighborhood, expect that to change soon.
