Volvo rethinks its lineup, drops plan for a Mercedes-Benz S-class fighter

Article by Christian Andrei, on November 9, 2010

Volvo does not have any immediate plans to offer a large, high-priced sedan that would rival the S class of Mercedes-Benz and the 7 series of BMW. Last August, the CEO of Volvo’s new owner, Zhejiang Geely Holding Group Co., said that he wants Volvo to develop cars that would compete with the most expensive sedans.

Geely CEO Li Shufu made these comments hours after Geely acquired Volvo Cars from Ford Motor Co. for $1.5 billion.

But before anyone gets too excited, Volvo Cars CEO Stefan Jacoby sent an e-mail to Automotive News to clarify that there are no plans for such a sedan “short or midterm.”

Jacoby explained that what Shufu did was “express a vision” of Volvo’s future. If Volvo had pursued this “vision” right away, it would have meant a significant price increase for the carmaker.

Volvo's largest sedan, the 2011 S80 3.2, is priced at $37,800 (including shipping) in the US.

On the other hand, the cheapest Mercedes S-class sedan is a hybrid, the S400, which has a starting price of $88,825, including shipping.

Meanwhile, the lowest-priced 7-series sedan from BMW, the 2011 740i, is priced from $71,525 including shipping. [via autonews - sub. required]

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