Volvo to cut U.S. dealer network by 30 percent

Posted: Jul 11, 2008
Filed under: Industry News, Volvo

As rumors of the brands sale keep popping up here and there , Volvo is planning to cut down its U.S. dealer network by 30 percent by the end of 2009. The Volvo brand has lost reportedly 1.1 billion euros ($1.73 billion) over the past 5 years in the U.S. market alone.

Volvo’s production in 2007 was 461,108. Sales of the S60 sedan dropped 28.1 percent while the XC90 fell 5.6 percent and the V70 fell 7.7 percent. Sales in the U.S. fell to 7,001 vehicles in June 2008, down to 26.9 percent from the same period an year ago. Overall sales in 2007 are down 14.2 percent.

Volvo recently announced that it will be adding more diesel and compact models to it U.S. lineup. The brands first hybrid drive will arrive in 3 years. The XC60 compact SUV will hit U.S. dealerships early next year.

Source: Automotive News (Subscription Required)

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  • justmatt
    I really like the look of the new C30. I agree that all of these European automakes need to bring the diesels to stateside.
    I did not realize that Volvo had this much fat to trim. Other makes took similar sales hits but decreasing the dealer network 30%? Maybe some markets have multiple Volvo dealers. I had no idea.
  • lonesome_coder
    Volvo diesels would sell very nicely in the US.

    Bring the S40 1.6D and you'll have an Accord/Altima/Camry killer right there.
  • ricky_b
    I actually love the quirky styling of Volvos and had considered looking at a new XC70 or even the as yet unreleased XC60, but the fuel economy on their entire product line is well below average. I thought the point of a turbo was to give you the performance of an engine with more cylinders but with the economy of an engine with fewer cylinders. Even their flat six... can't keep up with other sixes of the same displacement and gives the fuel economy of an eight. If Volvo can fix this fast, I'll go look again, otherwise, I'll have to look at the Germans.
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