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Volvo eying return to 100k US sales to ensure dealer profitability

Struggling Volvo may be on a verge of a renaissance thanks to the forthcoming completion of its lauded concept car trilogy, new Drive-E engine family and much-discussed SPA modular platform. Its nascent renewal is mostly being financed by $11-billion in funding from its Chinese parent company, Geely, and if it all goes right, Volvo hopes to sell 100,000 cars a year in the States by 2016. That milestone is vital, because it would ensure Volvo's US dealer network is profitable, according to Volvo CEO Håkan Samuelsson.
In a new Ward's Auto story, Samuelsson notes that his company is launching a slate of fresh products in the coming years, including the new-to-the-US V60 wagon and mid-cycle updates for its S60 sedan and XC60 crossover. But the most important new vehicle will be the recently spied XC90 that is expected to be unveiled just before the end of this year. Samuelsson is also looking at future vehicles for the US, including replacements for the S80 and V70. The V40 is also planned for the US, but not until the next generation, according to the Volvo CEO.
Of course, it's going to take a lot to reach 100,000 US sales in three years. Volvo sold just 61,233 units here in 2013, and according to WardsAuto, Volvo hasn't sold 100,000 cars in the US since 2007. To reach its goal, Volvo's stateside business will need to grow sales by about 40 percent.

Future Classic: 2008-2013 Volvo C30

Volvo has a storied reputation of building cars that are safe and solid – vehicles that are as cherished for their function-over-form designs as they are their mechanical longevity. But Volvo is also low-key cool. The Swedish carmaker is beloved by enthusiasts for its commitment to offering wagons, and for its many motorsports efforts. Flying brick, anyone? That coolness doesnÂ’t always trickle down to VolvoÂ’s road cars, but every now and then, the company gives us something a little weird. And in the mid-2000s, Volvo introduced the C30: a two-door hatchback geared towards younger, hipper buyers. Was the C30 a luxury compact? A hot hatch? Nah, it didnÂ’t really fit either vibe. Still, the C30 was nevertheless cute and quirky, and compared to other Volvos of the era, it was truly one of a kind. Why is the Volvo C30 a future classic? The C30 rode on the same platform as the S40 sedan and V50 wagon (as well as the contemporary Mazda 3 and EuropeÂ’s second-generation Ford Focus), but had way more personality than both. VolvoÂ’s hallmark tall taillights flanked a huge piece of glass that extended from the roofline to the bumper, serving as the C30Â’s hatch. Of course, this expansive window also meant the items in the cargo area were readily on display, making them an easy target for smash-and-grab thefts. A range of powertrains were available around the world, including diesel engines and even a super-limited-production electric variant. In the U.S., however, we only got the T5 gas engine, which in its standard form produced a 2.5-liter turbocharged inline-5 with 227 horsepower and 236 pound-feet of torque (more on the not-so-standard form later). You could get a six-speed manual transmission, which wasnÂ’t a terribly engaging gearbox, but was still more fun than the five-speed automatic. With the C30, Volvo put an emphasis on the hatchbackÂ’s ability to pump up the jams. An optional Premium Sound package had 10 Dynaudio speakers, an Alpine subwoofer and Dolby Pro Logic II surround. This setup could even play CDs with MP3 and WMA files, and included an AUX jack for things like iPods. Archaic technology by today's standards, but in the 2000s, this was clutch. 2013 Volvo C30 R-Design Polestar Limited Edition View 12 Photos What is the ideal example of the Volvo C30? One word: Polestar. In 2012, Volvo introduced a limited-edition C30 Polestar, only 250 of which were sold in the United States.

Volvo uncovers widespread cheating by its Chinese dealers

According to a report in Reuters, the findings of an internal investigation conducted by Geely-owned Volvo is that its Chinese dealers vastly overreported their sales numbers in 2011, then even more vastly underreported their 2012 sales figures. About "half the dealers" out of the 151 total outlets gamed the system in order to get incentives for reaching volume objectives, falsely recording about 7,000 more units sold than was actually the case. Instead of 47,140 cars sold in China in 2011, the real number should have been 39,871.
Volvo corporate books a sale once it ships a car to a dealer, so that meant there were 7,000 more cars in inventory than there should have been. To restore the balance, the dealers underreported their 2012 sales while they unloaded those extra cars since, naturally, they couldn't claim the sale again. That made it look like sales declined by 11 percent in 2012, even though they actually increased year-on-year. The adjusted sales number for 2012 totalled 45,896.
Volvo has met with its dealers and told them to stop the deceitful practice. The discrepancies weren't so great that the company plans to restate its historic numbers, but from now on, it apparently plans to occasionally check inventory to make sure the numbers match and that it has a true picture of how individual models are selling.