Volvo CEO Stefan Jacoby is looking to form a captive finance arm in the United States and cut back the brand’s product line as part of a push to expand sales in the United States. While it cuts back on other models, Volvo may also increase supplies of its core models in the United States after the summer.
“We’re investigating creating a captive finance arm in the U.S.,” Jacoby said in an interview with Automotive News. “We’re committed to increasing sales here.” He said a decision probably would come by year end.”
Previously, Jacoby announced plans to boost U.S. sales from 53,948 last year to about 120,000 by 2020. Lucky for him, the Swedish brand’s sales are up 26 percent through May to 29,203. He said Volvo is on track to sell 60,000 to 70,000 vehicles in the U.S. market this year.
As far as trimming the lineup goes, Jacoby decline to give specifics; however, he said that the main focus will be on the Volvo S60, XC60 and the XC90.
Volvo previously stopped selling the V50 and V70 in the U.S. and has told dealers it will also phase out the S40.
– By: Omar Rana
Source: Automotive News