Volvo to Cut Down its U.S. Lineup, V50 Among the First to go

With its U.S. sales steadily declining for 7 years now, Volvo has no choice but to radically rethink its strategy. The Swedish automaker is currently offering nine models in the States or about as many as Volkswagen does, but it sold almost five times fewer cars than the Germans in 2010.

Consequently, the Swedish brand, which is now owned by China's Geely, has decided to significantly reduce the number of models in its North American lineup and concentrate on best-selling vehicles in an effort to increase sales.

“Five or six is probably a good number”, said Doug Speck, head of Volvo’s operations in the U.S., in a telephone interview for Bloomberg. “We have to focus on the key segments with significant volume potential”.

Mr. Speck confirmed that the V50 estate is sure to go, although didn’t specify exactly when, saying that dealers will be notified first. The manufacturer hasn’t decided yet which other models will be phased out, but it will definitely keep the S60 sedan and the XC60 and XC90 crossovers, he added.

Volvo will also try to boost sales with more advertising and expects “double-digit” percentage growth in the U.S in 2011.

As for the near future, Mr. Speck said that Volvo will introduce hybrids and all-electric cars, but declined to say if it will bring diesels to America.

By Csaba Daradics

Source: Bloomberg

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VIDEO: Suzuki Pits Kizashi Against Mercedes C-Class, Audi A4 and Volvo S40 in New Ads

Even though Suzuki had high hopes for the new Kizashi, sales of the sedan model haven't exactly blown the socks out of anyone this year. In fact, in the U.S., Suzuki has only managed to deliver a mere 5,269 units of the four-door saloon through November. Do the math and that comes to under 500 cars a month.

But the Japanese automaker isn't about to throw in the towel, not just yet. Marking one of its largest advertising campaigns in years, Suzuki has launched an ambition set of edgy ads pitting the Kizashi against similar sized models in the luxury segment such as the Mercedes-Benz C350, Audi A4 and the Volvo S40.

In each case, the Kizashi is shown in a side-by-side test with one of the aforementioned models plus an outsider, and by that we mean a motorized sofa, a man covered in a bubble-wrap suit and a stretch limousine. Well, you can't blame Suzuki for not having a sense of humor. Scroll down to watch all three ads in the videos below.

Source: Suzuki & Autonews

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Volvos Issues Recall on S40, V50, S60 and XC60 Models Over Power Seat Problems

A defective front passenger seat power system on certain Volvo models has prompted a recall of 7,420 cars from the Swedish automaker. Federal officials said that the front seat rail's detection system was manufactured incorrectly and may permit the passenger to forward the seat beyond the intended maximum, putting them at risk of injury in a crash.

The models affected from the recall are the 2009-2011MY S40 sedan, V50 station wagon and S60 sedan, plus the 2010-2011MY XC60 crossover. Volvo said the company's dealers will inspect the front passenger side seat rails for the presence of an "end stop" and repair the vehicles as necessary free of charge.

The Swedish automaker has not yet provided a date for the scheduled recall, but owners can contact the company for more information at 1-800-458-1552.

By Csaba Daradics

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