Autoblog

Click to view a hi-res gallery of the Volvo C30 Green Racer

Let's play a little word association game here. When I say "Volvo", what comes to mind? Swedish. Safety. Soccer moms. Station wagons. But racing?

Granted, Volvo is not one of the better-known names in motorsport, but the company has been competing for the last couple of seasons in the Swedish Touring Car Championship. Volvo Motorsport actually took the first two championships of the series in 1996 and 1997, and came back to the series last year with an E85 ethanol-powered C30, campaigned by Polestar Racing AB. Although the green racing hatch has yet to reclaim the national title for Volvo, it has won a couple of races against conventionally-fueled competitors from the likes of Audi, BMW, Mercedes and Opel. The Swedish automaker has now decided to bring the vehicle up a level to the World Touring Car Championship when the series comes to Brands Hatch in the UK next weekend. It will be interesting to see how the E85 Volvo will fare against the diesel-powered Seats and the other gasoline-powered regulars in the WTCC, however Volvo's entry will be strictly for exhibition and not eligible for points. Press release after the jump and images in the gallery below.

[Source: Volvo]

Click above for a high resolution image of the C30 D-Design package

Volvo gave its C30 hatchback a pretty aggressive look when it introduced the R-Design package, but unfortunately none of that sportiness made its way beneath the hood. Adding some show to the go, Volvo has reportedly created a C30 prototype fitted with a turbocharged inline-5 pumping out 350 horsepower using the Ford Focus RS engine block as a base. Best of all, it would be able fully put down all that power combined with Volvo's AWD system, unlike the FWD system on the Focus RS. Unfortunately, Volvo has no current plans to bring the car to production, and with high gas prices and upcoming fuel consumption regulations, it would be tough to convince them otherwise.

[Source: MotorAuthority.com]

A couple days back we received word from Automotive News that Volvo was looking to downsize its dealer body by 30 percent in an effort to cut costs. The Swedish automaker says that isn't going to happen. PR VP Geno Effler said that while Volvo doesn't plan to cut almost a third of its 350 US dealers, it will try to persuade its struggling dealers to call it quits. The problem with Volvo's denial is that we'd heard about Volvo closing a significant amount of dealers way back in December, before the car market took it's most recent nose dive.

With Volvo sales down 14 percent for the year and constant talk about a Ford/Volvo split, we wouldn't be surprised if there are more than a handful of dealers in need of coercion. Not that the prodigious dip in sales volume has everything to do with dealers, either. Volvo's lineup isn't exactly fresh or fuel efficient, which spells disaster in this vehicle market.

[Source: Automotive News - Sub. Req.]

Volvo hasn't been doing too hot lately, posting a $1.73 billion loss over the past five years as it flails to find its niche. Sales of almost every Volvo product have declined in 2007, with the S60 falling by 28.1 percent, the XC90 dropping 5.6 percent and the V70 station wagon losing 7.7 percent. For June of 2008, Volvo only moved 7,001 vehicles, down 14.2 percent compared to last year. Something has to be done on the retail side, and according to Automotive News, dealers are on their way out.

The automaker is looking to cut out approximately 30 percent of its U.S. dealer network by the close of next year, however, Volvo retailers won't be cut in Europe, nor Russia, where Volvo is a leader in premium vehicle sales.

Volvo recognizes that part of its problem is fuel efficiency, so it's focusing on producing smaller vehicles and pushing its C30 hatch hard in the States. A hybrid version of the XC60 is in the works, but that won't be out for at least another three years... in Germany, and as a stopgap, Volvo plans to implement start-stop technology on its smaller engines.

[Source: Automotive News – Sub. Req.]

Following up on our report last month about Volvo possibly going to the Chinese, state media is now reporting that Chery Automobile, one of the largest independent and fastest growing Chinese auto manufacturers, has its eyes on the Swedish automaker. Although officials at Chery rule out the possibility of buying Volvo, other sources have stated that the Chinese automaker has already negotiated funding for a possible acquisition. If so, that funding will be significant-insiders put Volvo's value at 30 billion yuan (about $4.4 billion dollars). This isn't the first time that Ford has been rumored to be cashing-out on Volvo... however, it was just two months ago that Ford officials reiterated that Volvo was not for sale. We wouldn't bet our yuan on it.

[Source: Automotive News, subs. req'd]

Click for hi-res gallery of Volvo Trucks clothing

Trucker chic isn't exactly the same in Europe as it is in America, where every tool with a practical-joke or retro-themed television show is punkin' out the mesh-backed trucker hats. Case in point: the new apparel collection launched by Volvo Trucks.

Although the fashion-forward collection might seem more aligned with Volvo's latest passenger cars than commercial vehicles, remember that, since 1999, the two divisions are separately owned (one independent, the other by Ford... for now) and both share the same name and logo. Commendably, Volvo Trucks didn't just slap its name on some t-shirts and backpacks and called it a day. The recently launched collection consists of more than 100 items, on which the company's designers collaborated with IKEA fashion designers for over a year. The line includes leather jackets sporting shoulder sections modeled on the company's trademark grille and watches shaped like the cabin's instruments. Clever, eh? We don't know who is driving the big-rigs on that side of the pond, but the Volvo Trucks collection has things for the whole family, including men, women and even children – like baby tees with UV protection to safeguard their fair Swedish skin. The items are available via the company's online shop at www.volvotrucks.com/merchandise. In the meantime, you can check out the press release after the jump and the images in the gallery below.

[Source: Volvo Trucks]

Ford says Volvo's not for sale, and the Blue Oval would be smart to hold on to its remaining vestige of the Premier Auto Group as long as it can, especially since engineering and platforms have become so entwined with Dearborn's product line. For its part, Volvo is angling to take on the high end Germans. Volvos have long been premium products, having built a reputation on exceptional durability, meticulous engineering, and of course, safety. Try as it might, however, Volvo has a hard time competing head on with BMW, Audi and Mercedes. The cachet of the Swedish automaker is diminished compared to the Germans, and dynamically, Volvos tend to get schooled hard despite being good, capable drivers when taken alone.

Operations chief Steven Armstrong tells Automotive News that Volvo is looking to be mentioned in the same breath as its intended targets, even as losses mount and layoffs ensue. Volvos already occupy the same pricing arena as the premium Germans, but that's partly due to a weak dollar and transport costs. The possibility of building its cars in the United States might bring prices down and allow better developed performance versions, versus the outclassed R models of the past. Also hurtful is the model range's appetite for fuel -- we've gotten mileage in the teens from some Volvos in the Autoblog Garage. Armstrong says that the fuel economy issue will be addressed soon as technologies like start-stop, energy recovery from braking, and further down the road, hybrid powertrains are brought to market. Green is a good way for Volvo to go, given the Scandinavian proclivity for low-impact, gentler consumption. What it all means is that soon, we may see a kinder, gentler, meaner, faster Volvo product lineup -- possibly managed by Russian, Chinese, or Swedish owners.

[Source: Automotive News – sub req.]

click above image for high-res gallery of the Volvo C30 Efficiency

In the wake of rapidly diminishing sales of large and not-particularly fuel efficient cars, Volvo is doing what only seems rational: introducing smaller vehicles with more fuel efficient engines. The company reportedly has plans to introduce three new diesel powered vehicles by the fall. We are unclear on where Volvo intends to target with its little green men cars besides emerging markets such as China and Russia, but we'd love to see some more stylish and fuel efficient options in the U.S. It's too early to speculate on what vehicles Volvo is referring to, but that's never stopped us before. The C30 is currently the Swedish automakers smallest vehicle and at last year's Frankfurt Motor Show, Volvo showed off its C30 Efficiency concept. We'd say that the timing certainly appears right for a production version of just such a machine. After all, who wouldn't appreciate the 52.26 miles per gallon from its 105 horsepower 1.6L turbodiesel engine?


[Source: Just-Auto - sub. required]

As Ford reportedly prepares to offload Volvo and dismantle the last remaining vestiges of its once proud Premier Automotive Group, reports indicate that discussions were, once again, held with Renault.

The French automaker was tipped as a potential buyer when Jaguar was on the table, expressing interest in acquiring a luxury brand (and evidently forgetting it had Infiniti up its sleeve). Along with Chinese automakers, Renault has reportedly been in on-again, off-again discussions with Ford over the sale of Volvo as well, though Ford insists that its Swedish subsidiary is not for sale.

[Source: Automotive News - subs. req'd]

An eternally unanswerable question seems to be whether or not Ford is actively shopping around Volvo for a buyer. Just this week we reported that Chinese automaker SAIC and some Russian investors had expressed interest in purchasing the Swedish carmaker from Ford, but today we learn from a source within SAIC that the company is doing nothing of the sort. The unidentified source said that, as far as he/she knew, the two companies were not in contact about a possible purchase at all. Volvo's staying quiet and licking its wounds after announcing 2,000 layoffs this week, while Ford is singing the same old song with a catchy chorus that insists Volvo is not for sale. Well, the rumor that some Russians are interested in Volvo hasn't been refuted yet, so until someone named Boris says otherwise, let's considerable Volvo on the market despite Ford's protest.

[Source: Automotive News, sub. req'd]