LexFather

http://www.autoblog.com/2010/11/29/r...premium-image/

PhilipMSPT

iTrader: (5)

Volvo needs to cost like an Acura, or less than a Lexus.

Right now, they're priced like a Bimmer, which is more than a Lexus...

TRDFantasy

A wise strategy for Volvo to adopt. They need to be unique, as in very Swedish, and not be priced like a luxury brand.

mmarshall

That, right there, is part of the problem. CEOs and marketers need to stop pulling numbers out of a hat, dictating those figures to their managers and employees, and acting like it's sink-or-swim if they don't reach that goal. One thing that time has taught, in the automotive marketplace, is that cars will sell themselves if you design them right, build them right, and satisfy your customers. Perhaps, over time, this practice has worked for Honda more than for any other company. Hondas, because of their superb quality, continue to sell in spite of their sometimes laughable styling.

In the end, though, it won't be his wishes, but the determination of customers, that will determine that.

Right now, in the U.S., though the image is (admittedly) somewhat unfair (as most automotive "images" are), Volvos tend to still be perceived as stodgy, super-safe cars driven primarily by schoolteachers and librarians. The BMW 3-series, for example, in the U.S., trounced the Volvo R-line of sport-sedans in sales. Personally, I only know of one person who has ever actually bought a Volvo R-series product, brand-new....and that was a handicapped person who was very concerned with safety, but still wanted a sport-oriented car.

speedflex

I think it is a good angle for them but the article doesn't specify how they will address this... will they bring prices down form a premium level or will it simply be in how they market the brand? i.e. de-emphasize luxury and push Swedish design.

It seems the middle tier is truly the most message conscious segment with Lincoln pushing technology with their "Smart luxury" message, Cadillac - American luxury with it's "Life, Liberty and The Pursuit" message, Infiniti stressing Japanese performance luxury - "Inspired Performance", and Acura stressing... what was it last we heard?

TRDFantasy

I agree, and I think that is because the near-luxury brands cannot sell on name or prestige or reputation alone. That is why they are so message conscious, and we have seen some examples of a few brands being desperate and continually changing their message. A certain unicorn brand comes to mind.

A lot of the big luxury brands also have a message, but they don't stress it that much or put so much emphasis on it as the near-luxury brands do.

mmarshall

Lincoln also uses the "Travel Well" theme.



They made their mark with the "Precision-Crafted-Performance" theme, but that was some time ago.

Lexus, I thought, had one of the best themes with "The Relentless Pursuit of Perfection". And that, indeed, served them well, until they started cutting back on some of their interior and sheet-metal quality in the last 5-6 years.

speedflex

As far as I can tell Acura's brand message is simply "Advance" (which doesn't really say much of anything).

vipism

dunno bout what peoplel expect to pay for luxury, but after seeing what kia and hyundai are offering at their price points, i don't even bother to look at mercedes, bmw and sometimes even lexus when I look for price to value.


you'd have to pay 3x as much for an equivalent benz or bmw and that's about where the branding appeal ends. I didn't even bother to look at the benz and bmw dealerships this time at the LA car show, sure they are great designs with bigger and bigger engines, but the prices keeps increasing as well.

LexFather

These near luxury brands are being squeezed from all sides. Its not just the luxury brands eating them alive its cars like the Genesis, Taurus, Avalon, Maxima etc etc that are seen equivilents or better though they lack the badge.

That is the danger of not having a damn clue and not investing to make your brand worth a damn where the BADGE and PRESTIGE are respected and people rather buy the brand and be associated with it than having a possibly better car.

I can't think of too many times people have asked me about Volvo. It rarely is mentioned. Their best received product all these years has been the big SUV they sell. They need to find a retro boxy theme and realize the curves HAVE NOT WORKED.

To complicate matters in the past Volvo was seen as the safety leader. It was their Ace. Today not so much, everyone is safe and Volvo doesn't lead here anymore.

They are in trouble, said it years ago.

TRDFantasy

Exactly.

Many of these near-luxury brands are lost, and don't seem to have a clue as to the fact they need a clear brand and image.

I agree the curvy styling on new Volvos is a flop. They need to go back to more distinct Swedish styling.

They've also dropped the ball as safety leaders. They stopped innovating so they are no longer safety leaders.

AlexusAnja

I never really saw Volvo as a premium brand when thinking of "luxury" or premium vehicles. Maybe it was Ford's ownership, but I just always saw it as super engineered, but overpriced, vanilla "mailbox" cars. Surely not worth the premium pricing that Volvo was asking.

mmarshall

.............meaning the old cubical/shoe-box designs before the late-1990's

While I (admittedly) tend to be somewhat conservative in auto styling myself, those old Volvo designs were about as stodgy as one can get....even by my tastes. Those shoe-box vehicles were one reason why the marque got its schoolteacher/librarian image.

Volvo and Mercedes, for the most part, still lead the safety-oriented list of auto manufacturers. But the reason they are not so far out in front as they once were (and seem to be lagging) is because the rest of the industry is rapidly catching up. Today, unlike decades ago, safety sells.

IS-SV

Some better cars for a change will be what really makes a difference at Volvo, despite what the CEO drones on about.

-J-P-L-

Exactly. These near luxury offerings are always better values than similar cars with "luxury" badges on them. Like Saab, nobody desires a Volvo. That's a big problem. At least with Acura you know you're getting top notch quality, if nothing else. With Volvo, you don't even get that.

True. Just about every car is safe now. Especially anything mid-size and larger. I feel sorry for people who still buy a Volvo because they think is easily the most safe car. Sure they are among the safest, but it's no reason to buy it for that one reason. Lexus and Acura are just as safe.