New CEO: Volvo is on track
Wednesday, January 4, 2012
ROCKLEIGH, N.J. -- below its new Chinese possession, Volvo encompasses a game arrange, U.S. sales are rising and it will afford to run TV commercials, says John Maloney, the new CEO of Volvo Cars U.S.
Maloney, 50, expects Volvo's U.S. sales this year to be "north of sixty five,000" units, concerning twenty five % on top of last year's fifty three,948. Next year he expects total U.S. light-vehicle sales to rise to thirteen.5 million units and sees Volvo rising eight to ten % despite no new product aside from a mildly freshened XC90 crossover in January.
Volvo's U.S. sales may have grown a lot of in 2011, however provides of the 3-year-old XC60 mid-sized crossover and also the redesigned S60 sedan were tight throughout the year, Maloney said. Volvo is increasing production in Sweden to enhance provide within the initial quarter of 2012, he said.
The biggest sales gains in 2011 came from the redesigned S60 sedan launched in late 2010, said Maloney. Through November, S60 sales were up concerning eighteen,000 units over the previous year to nineteen,331.
Other key factors:
-- Incentive spending is below $2,000 a vehicle -- less than the competition and also the trade year-to-date average of concerning $2,500, per information provided by Volvo.
-- Spending in 2011 are double 2010's, said Maloney. Most of the cash is being spent on national cable TV commercials. per Kantar Media, selling spending jumped to $42.5 million through September, from $31 million in 2010.
-- Dealer satisfaction is improving. Maloney said Volvo jumped to 14th in overall ranking, up from twenty first, within the latest NADA dealer perspective survey, that has not nevertheless been released. Most dealers are profitable, he said.
-- a replacement product strategy is in place. Vehicles based mostly on a typical versatile mid-to-large platform can seem beginning in 2014, with the replacement of the flagship XC90 crossover triumphing. the massive S80 sedan replacement is scheduled for 2015.
-- New four-cylinder naturally-aspirated and turbocharged engines can replace Volvo's five- and six-cylinder powerplants with the new generation vehicles. Plug-in hybrids also are expected, however no firm plans for the U.S. market are disclosed.
Volvo continues to be way wanting its 2004 U.S. peak of 139,067 units, however it's probably to hit the one hundred,000 vehicle mark in 2012 or 2013, says Chip Ott, owner of Volvo of Fort Washington in Pennsylvania and chairman of the dealer council. "We got to sell one hundred,000 cars a year within the United States; throughput is that the most significant a part of the business."
Ott says dealers are involved concerning inventory and increasing sales, however they are additionally "very snug," with Maloney. "He has been terribly easy with us."
Maloney, a 28-year trade veteran, was employed by Ford Motor Co. when he graduated from Purdue University with a degree in business and minor in engineering. He joined Volvo in 2000 and previously was vice chairman of promoting and designing.
He replaced Doug Speck, who was promoted in June and moved to Sweden to become senior vice chairman of promoting, sales and client service at Volvo Cars.
Maloney's an obsessive fan of auto racing and school soccer, particularly Michigan groups. Maloney plays tennis and joins Volvo executives at a public court each Thursday to play doubles.
Maloney can oversee solely the U.S. market as of Jan. 1, when the parent company can spin off Canada into a separate sales region.
Maloney, 50, expects Volvo's U.S. sales this year to be "north of sixty five,000" units, concerning twenty five % on top of last year's fifty three,948. Next year he expects total U.S. light-vehicle sales to rise to thirteen.5 million units and sees Volvo rising eight to ten % despite no new product aside from a mildly freshened XC90 crossover in January.
Volvo's U.S. sales may have grown a lot of in 2011, however provides of the 3-year-old XC60 mid-sized crossover and also the redesigned S60 sedan were tight throughout the year, Maloney said. Volvo is increasing production in Sweden to enhance provide within the initial quarter of 2012, he said.
The biggest sales gains in 2011 came from the redesigned S60 sedan launched in late 2010, said Maloney. Through November, S60 sales were up concerning eighteen,000 units over the previous year to nineteen,331.
Other key factors:
-- Incentive spending is below $2,000 a vehicle -- less than the competition and also the trade year-to-date average of concerning $2,500, per information provided by Volvo.
-- Spending in 2011 are double 2010's, said Maloney. Most of the cash is being spent on national cable TV commercials. per Kantar Media, selling spending jumped to $42.5 million through September, from $31 million in 2010.
-- Dealer satisfaction is improving. Maloney said Volvo jumped to 14th in overall ranking, up from twenty first, within the latest NADA dealer perspective survey, that has not nevertheless been released. Most dealers are profitable, he said.
-- a replacement product strategy is in place. Vehicles based mostly on a typical versatile mid-to-large platform can seem beginning in 2014, with the replacement of the flagship XC90 crossover triumphing. the massive S80 sedan replacement is scheduled for 2015.
-- New four-cylinder naturally-aspirated and turbocharged engines can replace Volvo's five- and six-cylinder powerplants with the new generation vehicles. Plug-in hybrids also are expected, however no firm plans for the U.S. market are disclosed.
Volvo continues to be way wanting its 2004 U.S. peak of 139,067 units, however it's probably to hit the one hundred,000 vehicle mark in 2012 or 2013, says Chip Ott, owner of Volvo of Fort Washington in Pennsylvania and chairman of the dealer council. "We got to sell one hundred,000 cars a year within the United States; throughput is that the most significant a part of the business."
Ott says dealers are involved concerning inventory and increasing sales, however they are additionally "very snug," with Maloney. "He has been terribly easy with us."
Maloney, a 28-year trade veteran, was employed by Ford Motor Co. when he graduated from Purdue University with a degree in business and minor in engineering. He joined Volvo in 2000 and previously was vice chairman of promoting and designing.
He replaced Doug Speck, who was promoted in June and moved to Sweden to become senior vice chairman of promoting, sales and client service at Volvo Cars.
Maloney's an obsessive fan of auto racing and school soccer, particularly Michigan groups. Maloney plays tennis and joins Volvo executives at a public court each Thursday to play doubles.
Maloney can oversee solely the U.S. market as of Jan. 1, when the parent company can spin off Canada into a separate sales region.
0 comments:
Post a Comment