Volvo to Cut Down its U.S. Lineup, V50 Among the First to go

With its U.S. sales steadily declining for 7 years now, Volvo has no choice but to radically rethink its strategy. The Swedish automaker is currently offering nine models in the States or about as many as Volkswagen does, but it sold almost five times fewer cars than the Germans in 2010.

Consequently, the Swedish brand, which is now owned by China's Geely, has decided to significantly reduce the number of models in its North American lineup and concentrate on best-selling vehicles in an effort to increase sales.

“Five or six is probably a good number”, said Doug Speck, head of Volvo’s operations in the U.S., in a telephone interview for Bloomberg. “We have to focus on the key segments with significant volume potential”.

Mr. Speck confirmed that the V50 estate is sure to go, although didn’t specify exactly when, saying that dealers will be notified first. The manufacturer hasn’t decided yet which other models will be phased out, but it will definitely keep the S60 sedan and the XC60 and XC90 crossovers, he added.

Volvo will also try to boost sales with more advertising and expects “double-digit” percentage growth in the U.S in 2011.

As for the near future, Mr. Speck said that Volvo will introduce hybrids and all-electric cars, but declined to say if it will bring diesels to America.

 

IG Geely Akan Saingi Tata Nano Mobil Termurah di Dunia

Chinese car, Geely, which plans to unseating Tata Nano as the world's cheapest car with a hatchback based on the historical event itself IG during the Beijing Motor Show recently concluded.

With an expected price somewhere around £ 1.800 - $ 2.700 - IG will replace the Nano, which retails for £ 2.500 ($ 3.800) and is currently the world's cheapest car.

Although this car is relatively poor price tag, the IG concept that we see in Beijing are equipped with a pair of gullwing doors AMG Mercedes-esque SLS, which makes it look a bit awkward considering the size of a little fat. However, according to Geely, the IG, because it's 185mm longer than the Toyota iQ and has a wheelbase 100mm longer too, will be produced as a second vehicle 2. Of course, aspects +2' 'notice to the person sitting in the back.

We would be very curious to see the gullwing doors on the production version of IG, but we're afraid that because they're trying to make cars as cheaply as possible, the type of equipment in the car door which will cost approximately $ 3,000 would be nearly impossible.

Geely, which recently bought Volvo from Ford, also claims that the IG, or Intelligent Geely, will be of better quality than the Nano.Although the IG is 185mm longer than the Toyota iQ and sits on a 100mm longer wheelbase, it is billed as a 2+2, with very limited rear space.The concept’s expensive gullwing doors are expected to be deleted in favour of a more conventional design.There’s even a chance that an electric version of the IG will be sold in Europe and the US.

Geely already sells cars in Russia and eastern Europe, and is looking to expand its reach. “The concept has had a very positive reaction, and with the car not launching until 2012 there is time for us to expand our network before then,” said a spokesman.

The Chinese version of the IG will be powered by a 988cc petrol engine developing 70bhp and 69lb ft and driving the front wheels through a five-speed CVT ’box.