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Volvo will focus on SUVs and sedans, rather than expanding its range with new station wagons or other body styles, the company's CEO Jim Rowan confirmed.
When asked if he could see a future without traditional Volvo station wagons, Rowan replied simply: “Yes. Because I think the market has changed, right?”
“It’s expensive to launch new models, and it’s also expensive to keep them on the market,” he said. “So we have to make a choice: instead of launching a new V90, for example, wouldn’t it be better to position this car a little differently? We have Black Editions, we have Cross Country versions – now we have different variants of the same basic model.”
“It’s much, much cheaper and much more cost-effective for us to scale up using the same platform and the same form factor,” he said.
The news comes weeks after Volvo UK's commercial director Robert Dean suggested that the decision to end production of the V60 and V90 models in 2023, then bring them back in 2024, was a mistake. "When you tell retail customers that estate cars are no longer available, they go and buy something else," he said.
But Rowan justified his position, noting: “We are making a very conscious choice about where we want to play in the market. So where we will differentiate ourselves is with SUVs; high ground clearance, very safe – and we think we can defend that position from the competition. It is much easier than being distracted by too many models.”
On the other hand, this focus on existing models could pave the way for super sedans and SUVs that could compete with the Audi RS and BMW M, with Chief Product and Strategy Officer Erik Severinsson saying: “There’s always a niche segment. The sporty family car; there are people who want the versatility of a family car but also the performance.”
“I think there are niches in the mainstream segments where you can do derivative versions,” he said. “But you can’t go completely into another type… you know?”
Volvo has just unveiled the new ES90 and is preparing to launch the all-new EX60 – an electric alternative to the revamped XC60 – next year. According to Rowan, he plans to strengthen the range with different variations of Volvo’s core models, and the company recently launched the EX30 Cross Country – an off-road version of its smallest electric car. The car is already on sale, with first deliveries scheduled for the coming months.
