Steven Armstrong, Volvo’s Chief Operating Officer, said that the economic crisis can allow the Swedish automaker to win customers from German premium brands such as BMW, Mercedes-Benz and Audi. Armstrong feels that wealthy buyers who want downplay how much money they have in their bank account during the downturn could opt for a Volvo instead of a BMW.
“We have a real opportunity for Volvo with respect to premium positioning. As people cut back, it becomes a little less acceptable to flaunt your money,” Armstrong told Automotive News Europe.
Armstrong said that wealthy buyers who are looking to reward themselves without showing off gives Volvo a great opportunity since it provides a “more socially acceptable product.”
Nonetheless, Volvo sales fell nearly 60 percent during the first two months of 2009 in the U.S., while sales dipped 31 percent in Europe.
– By: The Daily Auto Editor