Report: Next-generation Volvo XC90 canceled

Despite all the hype and launch plans made for the end of 2009, Volvo has canceled the next-generation XC90. According to a report by Auto Motor Sport, source close to AMS Sweden say that the decision to cancel the next Volvo XC90 was made a few days ago and suppliers have yet to be informed.

The decision was based by taking into account the increased cost in production that would have to go in to make the SUV more fuel-efficient. Ford is also looking at the sales dropping in the SUV market and has come to the conclusion that in order to stay competitive it will have to offer a low fuel-economy and a hybrid model.

With that, we may say just a minor facelift for the 2009 XC90 which is expected to continue up to 2012. No major changes to the engines or other technical specs are in the works.

However, Volvo will keep working on the smaller XC60 and XC50 SUVs.

 

Source: Auto Motor Sport (via WorldCarFans)

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