Mr. P
08-02-2004, 09:32 AM
The following copied from an article out of UK.
Did they get it right? Does this fit you?:
If you slot into the 35 to 50 demographic and lean towards active holidays and outdoor pursuits, then, Volvo believes, the XC90 is your sort of car.
The low-key Swedes may not say as much, but they are expecting a rousing reception for the XC90, especially in the US, reckoning the initial 35,000-40,000 units will shift themselves.
The UK market, meanwhile, is arguably second only to the US.
“Ours is the only mature market for SUVs on this side of the Atlantic,” says Volvo Cars UK’s managing director, Gerry Keaney. “The lessons learned here will help market the car all over Europe.”
Britain is Volvo’s third – sometimes second – biggest market. After selling 40,000 cars a year here for several years, the company expects to reach 45,000 this year, the beginning of a drive to sell 60,000 by 2005. Right now, the UK contributes 10 per cent to Volvo’s global sales.
Projected XC90 sales of 3500 in its first full UK year will help Volvo’s growth bid. Keaney believes the estimate – 10 per cent of the UK SUV market – may be conservative, given that combined Merc M-class and BMW X5 sales hit nearly 12,000 last year. Volvo’s aggressive pricing strategy will help. The range starts at £28,400* for a D5 S and extends to £33,640* for the flagship T6 SE.
And all XC90s come well equipped: the difference between the S and SE trim levels is merely wood-and-leather cabin trim, a CD autochanger and 18in Atlantis wheels.
In fact, Volvo UK is facing demand outstripping supply. It already holds more than 400 deposits in the UK, and US orders run into thousands.
But could the XC90 pose a threat to a sister car? Volvo should be concerned about the SUV cannibalising V70 estate sales, but new research shows surprisingly few SUV buyers come out of the estate market.
In fact, Volvo expects 75 per cent of XC90 buyers to be lured from rival brands, while customers will be senior professionals, aged from 35 to 50, with families.
All of which points to a successful UK launch. But what of other European markets? Volvo expects strong sales in Italy, Germany and France. Sweden, however, remains a mystery. Everyone agrees the SUV is ideal for Swedish conditions, but there’s been no demand. But a watershed may be coming.
Volvo’s president tells of a 65-year-old doctor friend. “He doesn’t need an SUV,” says Hans-Olov Olsson, “but he wants one. He knows he’ll need to justify it to his wife, so he wants a list of all the sensible reasons for having an XC90. Then, he says, we can have his order.”
Did they get it right? Does this fit you?:
If you slot into the 35 to 50 demographic and lean towards active holidays and outdoor pursuits, then, Volvo believes, the XC90 is your sort of car.
The low-key Swedes may not say as much, but they are expecting a rousing reception for the XC90, especially in the US, reckoning the initial 35,000-40,000 units will shift themselves.
The UK market, meanwhile, is arguably second only to the US.
“Ours is the only mature market for SUVs on this side of the Atlantic,” says Volvo Cars UK’s managing director, Gerry Keaney. “The lessons learned here will help market the car all over Europe.”
Britain is Volvo’s third – sometimes second – biggest market. After selling 40,000 cars a year here for several years, the company expects to reach 45,000 this year, the beginning of a drive to sell 60,000 by 2005. Right now, the UK contributes 10 per cent to Volvo’s global sales.
Projected XC90 sales of 3500 in its first full UK year will help Volvo’s growth bid. Keaney believes the estimate – 10 per cent of the UK SUV market – may be conservative, given that combined Merc M-class and BMW X5 sales hit nearly 12,000 last year. Volvo’s aggressive pricing strategy will help. The range starts at £28,400* for a D5 S and extends to £33,640* for the flagship T6 SE.
And all XC90s come well equipped: the difference between the S and SE trim levels is merely wood-and-leather cabin trim, a CD autochanger and 18in Atlantis wheels.
In fact, Volvo UK is facing demand outstripping supply. It already holds more than 400 deposits in the UK, and US orders run into thousands.
But could the XC90 pose a threat to a sister car? Volvo should be concerned about the SUV cannibalising V70 estate sales, but new research shows surprisingly few SUV buyers come out of the estate market.
In fact, Volvo expects 75 per cent of XC90 buyers to be lured from rival brands, while customers will be senior professionals, aged from 35 to 50, with families.
All of which points to a successful UK launch. But what of other European markets? Volvo expects strong sales in Italy, Germany and France. Sweden, however, remains a mystery. Everyone agrees the SUV is ideal for Swedish conditions, but there’s been no demand. But a watershed may be coming.
Volvo’s president tells of a 65-year-old doctor friend. “He doesn’t need an SUV,” says Hans-Olov Olsson, “but he wants one. He knows he’ll need to justify it to his wife, so he wants a list of all the sensible reasons for having an XC90. Then, he says, we can have his order.”