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Volvo won't go after S-Class, 7 Series market

Volvo vice president of powertrain engineering, Derek Crabb, recently said that the Swedish automaker is developing smaller and smarter powertrain options that will "turn V8s into dinosaurs" - a statement that could have been our first indication that Volvo is no longer looking to create a luxury flagship sedan to take on German land yachts like the Mercedes-Benz S-Class, Audi A8 and BMW 7 Series. Now Automotive News seems to be backing this up after speaking with CEO Hakan Samuelsson, who said that a big sedan wouldn't fit the brand's green image and, more importantly, might not even be a car that its customers would even consider.
Rather than trying to compete in a small, established market against rear-drive, 12-cylinder sedans, Volvo is looking at the emerging, higher-volume premium small car segment to take on its German rivals with the all-new Volvo V40 (shown above). Not wanting to abandon the big-vehicle segment altogether, a next-generation XC90 is due out within the next couple years (and was spotted in some recent spy shots), and it will ride on the new Scalable Platform Architecture (SPA), which will be shared with the new S80 according to the AN article.

Automakers want to stop the EPA's fuel economy rules change, and why that's a shortsighted move

With a Trump Administration looming, the EPA moved quickly after the election to propose finalizing future fuel economy rules last week. The auto industry doesn't like that (surprise), and has started making moves to stop the EPA. Ford CEO Mark Fields said he wanted to lobby Trump to lower the standards, and now the Auto Alliance, a manufacturer group, is saying it will join the fight against cleaner cars. The Alliance represents 12 automakers: BMW, Fiat Chrysler, Ford, GM, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, VW, and Volvo. Gloria Bergquist, a spokesperson for the Alliance, told Automotive News that the "EPA's sudden and controversial move to propose auto regulations eight months early - even after Congress warned agencies about taking such steps while political appointees were packing their bags - calls out for congressional action to pause this rulemaking until a thoughtful policy review can occur." The EPA was going to consider public comments through April 2017, but then said it would move the deadline to the end of December. That means that it can finalize the rules before President Obama leaves office. The director of public affairs for the Consumer Federation of America, Jack Gillis, said on a conference call with reporters last week when the EPA originally announced its decision that it is unlikely that President Trump will be able to roll back these changes. Gillis also said on the same call that any attempt by the automakers to prevent these changes would be history repeating itself. "These are the same companies that fought airbags, and now promoting the fact that every car has multiple airbags," he said. "These are the same companies that fought the crash-test program, and now are promoting the crash-test ratings published by the government. So, it's clear that they're misperceiving the needs of the American consumer." There are more reasons the Allliance's pushback is flawed. Carol Lee Rawn, the transportation program director for Ceres, said on that call that the automotive industry is a global one, and many automakers are moving to global platforms to help them meet strict fuel economy rules around the world.

Volvo Cars August sales down 4.6% year-on-year

HELSINKI — Sweden's Volvo Cars saw its August sales fall by 4.6% year-on-year to 43,666 vehicles as the global semiconductor shortage and other disruptions continued to hurt deliveries, the Swedish car maker said in a statement. Demand remained good, but the component shortages as well as power cuts and COVID-19 outbreaks in China interrupted output, the company said. Volvo Cars on Thursday said it would temporarily close its plant in the Chinese city of Chengdu due to local coronavirus restrictions and that a second facility had also been affected by recent lockdowns. The company's shares traded down 0.7% at 0737 GMT, lagging a 1% rise in Stockholm's benchmark index. (Reporting by Essi Lehto, editing by Terje Solsvik) Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.