Volvo, Saab need distinctive design and the right price tags to beat Bmw

Article by Christian Andrei, on September 24, 2010

Experts believe that for Volvo Car Corp. and Saab Automobile AB to succeed at increasing sales, they have to offer distinctive designs that come with the right prices to steal sales from luxury brands (including BMW AG and Daimler AG's Mercedes-Benz).

Brian Johnson, an automotive analyst at Barclays Capital in Chicago, said that the companies will have a difficult time of moving up as they have to “get something that's uniquely Scandinavian in design, as opposed to being ‘me-too' German.

”Saab and Volvo, which have had losses year-after-year under General Motors Co. and Ford Motor Co., would have to compete in the luxury segment in the US in order to restore profitability.

Volvo considers the US to be its largest market. Meanwhile, this market was Saab's biggest up until last year. Volvo’s deliveries in the US dropped by 12% in the first eight months of the year because its offerings such as the S40 sedan didn’t attract the buyers it had aimed for. 

Meanwhile, Saab's US deliveries fell by 86% as consumers waited for the new 9-5, its first new model in eight years. On the other hand, both BMW and Mercedes reported gains.

The new owners of these Swedish brands are currently planning new models, which actually takes years to build. While that is going on, they aim to create some buzz through their displays at the Paris show.

Volvo will debut its new V60 station wagon, while Saab will display a prototype of its first electric car. User trials will start for a test fleet of the Saab 9-3 ePower, an all-electric version of the 9-3 SportCombi, in Sweden next year. [via autonews - sub. required]

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016