In the article "How Volvo became cool - five ways it ditched its bland reputation", Rob Hull, Monitoring Editor at Daily Mail Online, listed 5 major turning points that successfully rebranded Volvo Cars to become a driving force in the luxury car market. Below you find a summary of the article!
1. Steering away from tradition for practicality
In the 80s and 90s, Volvos like the 460 and 240 were seen as uncool and boxy, associated with stuffy owners. However, some models are now gaining value. Volvo's strong safety focus, starting with the first three-point seatbelt in 1959, led to innovations like booster seats and blind-spot detection. Today, features like speed limiters and driver monitoring systems support Volvo's 'Vision 2020' goal to eliminate vehicle fatalities.
2. New direction under Chinese ownership
Volvo, owned by Chinese company Geely since 2010, has undergone a significant transformation. Geely's $1.8 billion purchase led to major investment and a shift towards luxury, helping Volvo become more stylish and competitive. The XC90 SUV, especially the £73,000 plug-in hybrid, is now a coveted choice.
Geely’s influence extends beyond Volvo, with stakes in Lotus, the London Electric Vehicle Company, and a 9.7% share in Daimler.
3. The Thomas Ingenlath Effect
After Geely acquired Volvo, the brand recruited Thomas Ingenlath from Volkswagen in 2012, who revitalized Volvo's design. Ingenlath, known for bold designs, introduced models like the Concept Coupe, XC Coupe, and Estate, moving Volvo away from its boxy past to a sleek, modern look.
His influence is evident in current Volvos, featuring distinctive design elements like the floating grille and Thor's hammer headlights. Ingenlath also enhanced Volvo's interior with a minimalist, touchscreen interface, aligning with Scandinavian design principles.
Ingenlath later launched Polestar, Volvo's performance brand, known for its stylish EVs.
4. A focus on Scandi-cool SUVs
This month, Volvo UK reversed its decision to stop selling estate and saloon models after seeing a decline in demand. Despite estates and saloons making up less than 10% of Volvo's UK sales in early 2023, the V60 and V90 will return with hybrid powertrains due to customer demand.
SUVs now dominate, accounting for 90% of Volvo's UK sales. Since 2013, SUVs have surged from 11% to 28.6% of the market. Volvo's shift to SUVs has boosted its sales from 32,666 in 2013 to 50,184 in 2023, a 54% increase despite overall registration declines.
Currently, Volvo's UK lineup includes the XC40, XC60, and XC90 hybrids, along with the electric EX30, EX40, and EX90. The XC40 and XC90 have won numerous awards.
5. Volvo's eco credentials - and honesty
Volvo has embraced EVs, appealing to eco-conscious drivers while maintaining its focus on practicality and safety, aiming to sell only electric models by 2030.
Currently, all Volvo models feature some form of electrification, with the company targeting 50% of global sales as EVs by 2025. The final diesel Volvo was produced in March.
Volvo has been transparent about the challenges of EV production. A 2021 report revealed that while EVs have higher production emissions, they become greener over time, typically after 30,000 to 68,400 miles. Despite some criticism, this honesty reflects Volvo's commitment to transparency.
