Volvo to cut dealer network
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Volvo to cut dealer network
Volvo has announced that it will be trimming its dealer network. The Swedish automaker will be asking its unprofitable and marginal dealers in the United States to give up their franchises. The cuts are due to slow sales and the weakening U.S. dollar. Volvo currently has 355 stores in the U.S.
"We have dealers losing money this year, last year and the year before," said Anne Belec, CEO of Volvo's U.S. sales arm told Automotive News. "If they couldn't make money two or three years ago, then they are going to really struggle going ahead. We want to talk with them."
The automaker expects sales to slip by 10% to 15% in 2008. Volvo failed to give an exact number of how many dealers it expects to cut, but hopes to trim its franchises by about 20%.
Recent rumors have suggested that Ford is looking to sell Volvo, but the Detroit automaker says it is holding on to its Volvo brand — at least in the short-term
"We have dealers losing money this year, last year and the year before," said Anne Belec, CEO of Volvo's U.S. sales arm told Automotive News. "If they couldn't make money two or three years ago, then they are going to really struggle going ahead. We want to talk with them."
The automaker expects sales to slip by 10% to 15% in 2008. Volvo failed to give an exact number of how many dealers it expects to cut, but hopes to trim its franchises by about 20%.
Recent rumors have suggested that Ford is looking to sell Volvo, but the Detroit automaker says it is holding on to its Volvo brand — at least in the short-term
The Green Grundel
Joined: Sep 2003
Posts: 1,323
Likes: 0
From: MN
That'd be cool if they went back to the boxier design. Now adays auto companies look back at their history and figure out what worked and what didn't and incorporate it into their new designs. Like the 300, throwbacks like the camaro and challenger.
I'd also rock a boxier volvo if they got it right.
I'd also rock a boxier volvo if they got it right.
Lexus Test Driver
Joined: Sep 2006
Posts: 1,386
Likes: 3
From: TX
Their product has no appeal whatsoever and they seem very stingy into getting better engineers to design better looking cars. The new S80 and C30 are not bad looking but they aren't getting a partial piece of each segment.
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Lexus Test Driver
Joined: Nov 2007
Posts: 5,285
Likes: 43
From: NV
I think so too. I've never been a fan of the new design, and the boxy design was safer and easier to drive, especially with regards to visibility from the car. It'd be nice to see a return to the traditional RWD platform as well.
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Lexus Fanatic
Joined: Oct 2003
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From: Virginia/D.C. suburbs
The main problem with Volvo, market-wise (and here we get back to that same dreaded old word) is image. They are fast becoming a niche brand that appeals most to safety-conscious people and to those who don't care much about driving dynamics (despite the slick, fastback styling, the average Volvo product feels and drives like an appliance). The Turbo, R versions, despite being marketed as sport sedans, drive like what you would expect.......turbocharged appliances. The brand, as a whole, is popular with librarians, environmentalists (despite most U.S.-market Volvos not being very frugal on gas), and those who work in the auto-safety buisness. Joan Claybrook, for example, who was President Carter's Chief of the National Highway Traffic Safety Administration (NHTSA) and later worked with Ralph Nader, drove them for many years......and is probably the car's most famous U.S. Market owner.
Last edited by mmarshall; Dec 26, 2007 at 07:03 AM.
Driver School Candidate
Joined: Dec 2007
Posts: 7
Likes: 0
From: Washington
They might try some advertising. Any advertising. Just a thought. Audi is about to surpass Volvo in sales. Might be due Audi's advertising campaign. I think Volvo has a well rounded model line. Granted, not the most exciting, but still good cars.
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