Why Volvo Won't Build A Big Volvo

Bertel Schmitt
by Bertel Schmitt

Australian Caradvice has the riveting story of (Geely-owned) Volvo discontinuing plans of a large S-Class type sedan that could mix it up with the likes of the Audi A8, the BMW 7er, and of course the Mercedes S-Class, all very much in favor amongst the Chinese rich and not so famous. Cardadvice makes it a fight between Geely CEO Li Shufu, who wanted the big Volvo, and his new hire Stefan Jacoby, whom he had snatched from VWoA to run Volvo, and who doesn’t want a big Volvo. The truth is elsewhere.

Jacoby told Automotive News in an email: “Mr. Shufu expressed a vision of where he would like Volvo to be in the future, and that vision includes a 7 Series and S-Class rival. However, short or mid-term, Volvo Cars does not have such a model in the product plan.” So there.

Cardavice rightly says: “Does Volvo really need a larger sedan though?” No, they don’t. The plans had grown on a proposed Chinese law that would shift a large chunk of cars bought by the government to home-grown brands. This would have been Volvo’s big opening. No more stretched A6, Chinese for “here comes a bigwig.” But as so often, proposed Chinese rules are being discussed in public and in the media, and if they don’t receive traction, they are shelved. (It’s an odd kind of democracy, but it is quite effective.) The bigwigs are not giving up their Benzes (made in joint venture with Beijing). The big joint ventures are all government-owned anyway, only BMW’s partner Brilliance is sort of private. Geely is private. Both Shufu and Jacoby made the right decision: It’s not worth it.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Blowfish Blowfish on Nov 06, 2010

    BMW builds the 530Li e.a. Both are unique to the Chinese market and not offered elsewhere in the world. Go figure. yrs ago circa 70s Merc build stretched 220, 230 limos for Hk market, I think they sell in home eu market. There were even 260 powered w126 body in HK too. As they dont need the stump pulling 5 litre engine but a smaller eng with big body will do. Probably they can charge as much for the big eng and subs with smaller eng. Just a reverse process here with big eng stuffed in a smaller body. IE C63

  • Paul W Paul W on Nov 06, 2010

    You guys are aware that Volvo DOES sell a stretched version in China, right? The S80L. From what I've pasted together reading different reviews, it's pretty crappy compared to the original, especially the interior.

  • Herb Herb on Nov 07, 2010

    Volvo never stood for "luxury", to begin with. And to enter a pretty crowded market segment without having a decent platform (given the competition) seems to be very risky for a recovering company like Volvo. BTW: If you look at saturated markets (e.g., in Europe) you will find out that "large luxury sedans" are a dwindling market segment.

  • Kita Ikki Kita Ikki on Nov 08, 2010

    "Li" is his last name. "Shufu" is his first name.

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