According to the latest reports, it appears that Volvo Cars is planning to launch a new five-door hatchback in 2012. Set to take on cars such as the Volkswagen Golf and Ford Focus, will be based on the current S40 sedan and will use the C30 Coupe platform architecture.
The new vehicle will target European buyers, as these types of vehicles are not so important for the United States market. With this new car, Volvo wants to improve its sales numbers, as the manufacturer sold only 335,000 cars globally, although it has the capacity for 500,000 units.
Volvo Cars Chief Executive Officer Stefan Jacoby takes this number even further, as he believes that Volvo can sell over 800,000 cars per year in within 10 years.
Jacoby remarked that that Volvo Cars is coming up with a new strategy over the next six months to determine how the carmaker can grow not only in emerging countries like China, but also in other established markets in Europe and the United States. He quipped that Volvo is currently working on a product strategy, and the carmaker has the opportunities to get leaner. He noted that as a relatively small car company, Volvo can move quickly.
Jacoby remarked that being lean is the only way to compete against the giants, referring to larger carmakers.
Based in on Torslanda in Gothenburg, Sweden, Volvo Cars is a subsidiary of Geely, a Chinese auto company. Volvo Cars has been owned by Geely since 2010. Volvo was set up in 1927, in Gothenburg, Sweden, as a 100-percent subsidiary of AB SKF. The trademark Volvo -- which is the Latin term for “I roll” was first registered on May 11, 1915 to be used for a special series of ball bearing for the American market. However, the SKF trademark was used for all the SKF products.
It was not until 1927 that the name Volvo was used again, this time as a trademark and auto company name. The first Volvo car -- Volvo OV 4 – rolled off assembly line on April 14, 1927.
Severely affected by the global economic crisis in 2008, Ford disclosed in December that year that it was considering selling Volvo. In March 2010, Geely agreed to purchase Ford’s Volvo car business from Ford. Before selling off Volvo, then Ford CEO Alan Mulally had already divested Aston Martin, Land Rover and Jaguar.
Volvo’s sale to Geely gained approval from the European Commission and China's Ministry of Commerce in July 2010, albeit separately. The deal was finalized on August 2, 2010 with Geely paying around $1.3 billion cash and a $200 million note.