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)