Volvo has devised a strategy to increase sales this year, following a fruitful 2011. John Maloney, CEO of Volvo Cars U.S., forecasts up to 10% hike in total U.S. light vehicle sales to more than 13.5 million units in 2012. He predicts a 25% increase in Volvo’s U.S. sales from 53,948 to “north of 65,000 units.”
Maloney noted that in 2011, its dealer satisfaction ranking also jumped from 21st to 14th, while most of its dealers were profitable. The carmaker’s S60 posted a remarkable increase in January-November 2011 sales, delivering 19,331 units. The figure is around 18,000 units more than the same period in 2010.
Maloney noted that Volvo could have sold more cars in 2011, but supplies of its XC60 and S60 were tight. He also blamed low incentive spending, with Volvo cashing out only less than $2000 while the industry average for 2011 is around $2,500.
With its 2012 game plan, Volvo is boosting its supply by increasing production in Sweden. The company will also double its incentive spending in 2012 and may run TV commercials.
Chinese-owned Volvo will also launch new cars starting 2014. The company is planning its XC90 replacement, and will unveil new vehicles based on a common flexible mid-to-large platform. The company is also planning its S80 sedan replacement in 2015. The carmaker will power these next-generation vehicles with four-cylinder naturally-aspirated and turbocharged engines. Volvo may also release plug-in hybrids. [source: Autonews]