GENEVA: Volvo Car Group unveiled its new XC60 SUV at the Geneva auto show today, the latest launch in a sweeping overhaul of its model line-up under Chinese ownership that will be key to driving sales and earnings ahead of a possible listing.
Despite being launched almost a decade ago, the original XC60 has remained popular among buyers and been the automaker’s best-selling model since 2009.
Featuring more than a passing resemblance to its larger sibling, the XC90, the new car continues Volvo’s two biggest vehicular aims – to develop cars that really do put a premium on exterior design and interior cossetting; and to build cars that push the boundaries in what’s possible in terms of reducing serious injuries in accidents and eventually avoiding accidents altogether.
The XC60 accounts for roughly a third of Volvo’s sales, leaving the new model with big shoes to fill as the carmaker looks to expand its niche in a premium market dominated by larger players such as Daimler’s Mercedes-Benz and BMW.
“The XC60 is in one of the hottest premium segments globally, so getting the execution and launch right is imperative for the growth of the brand,” said Bill Rinna, senior manager for North American forecasts at consultancy LMC Automotive.
“Globally, we expect the new XC60 to sell 175,000 units annually. Its two main competitors are not standing still however, as both the Audi Q5 and BMW X3 have or will be getting updates of their own.” Volvo sold just over 161,000 XC60s last year.
Over the past couple of years, the company has begun delivering new models developed since its purchase by China’s Zhejiang Geely Holding Group Co. from Ford Motor Co. in 2010, including the larger XC90 SUV and a new 90-series.
Volvo is banking on a joint platform developed under Geely’s ownership for all but its smallest models – key to keeping down costs and improving flexibility for a small carmaker like Volvo.
Later this year, it is also launching the XC40 compact SUV, aiming to further capitalise on a strong market for SUVs.
“Now we are really entering into a segment that should deliver volume,” Volvo Car Group Chief Executive Hakan Samuelsson told reporters.
“Before the end of the year we will have the biggest line-up of SUVs we’ve ever had.” After struggling under Ford, sales at one of Sweden’s largest companies by sales and staff have risen sharply, hitting a record 534,332 cars last year.
Samuelsson has said he expects another record in 2017, the fourth straight if achieved, on the way to an annual target of 800,000 cars in the medium term.
Volvo has also taken steps towards a possible listing, raising 5 billion crowns ($557 million) through the sale of newly issued preference shares, though Samuelsson has said any flotation is a question for its owner.
The XC60 production is set to begin in mid-April at the carmaker’s plant in Torslanda, on the outskirts of Gothenburg in western Sweden.
The new car offers the complete suite of active safety and semi-autonomous drive systems that are available on the much larger Volvo XC90 and S90 sedan including run-off road mitigation, large animal, cyclist and pedestrian detection systems, autonomous braking, plus Pilot Assist. When activated this system can steer, accelerate and slow the car automatically, in line with traffic conditions, on well-marked roads at speeds of up to 130kph.
What’s more, the car is the first ever to feature three new safety systems that take active steering to a new level. It will be able to pull back into lane if there’s the possibility that an oncoming car could collide with it. It will be able to steer around as well as brake if a person or cyclist crosses its path and slowing alone won’t mitigate a potential accident, and during overtaking moves, if there’s a vehicle in the car’s blind spot, it will take steps to pull the car back into lane
“All three of these new features represent clear steps in our work towards fully autonomous cars,” said Malin Ekholm, Senior Director, Volvo Cars’ Safety Centre. “We have all of the benefits of the safety technology we introduced in our larger 90 series cars in the new XC60. This is fully in-line with our strategic approach to develop automotive safety systems based on real-life, real-road safety.”
The car will come with a range of gasoline, diesel and hybrid powertrains, the most potent of which will be the T8 Twin Engine plug-in hybrid. That will give the car a 0-100kph time of just 5.3 seconds and a maximum output of 407hp, making the car equal parts safe and fun to drive. — Reuters/Relaxnews
Keyword: Stakes high as Geely's Volvo replaces best-selling XC60