Will This Be Volvo’s Savior?

Issue #187

​It’s safe to say that Volvo isn’t on everyone’s mind, especially as of late. 

The Swedish company wants to change that, and it might have pulled all the right moves. We explain.

Or, you can continue to read by scrolling down.

Market News

• Chrysler CEO Chriss Feuell leaves for personal reasons. Dodge’s CEO will take over both tasks. Here’s more.

• Speaking of Stellantis, the company hires this many engineers to deal with quality control issues. The recipe for success seems to be that simpler is better.

• The Jeep Wrangler finally overcomes one of its biggest challenges. Here’s more.

• There’s a “Need for Speed” bill going through the US Senate, but is it as fun as it sounds? Here’s what it’s all about.

• No, Toyota isn’t moving its Alabama plant to Ontario. Here’s the explanation.

Safety and Recalls

• Ford recalls 1.74 million vehicles due to rearview camera issues. Here are the affected models.

• Toyota recalls more than 550,000 SUVs due to seat issues that could result in injury.

Car Culture

• This car interior feature is one of the worst abominations ever. Do you agree?

• F1 drivers hate their new cars. Here’s why.

• California is cracking down on the “Montana Loophole,” and here’s more on it if you don’t know what it is.

• VW dealers are suing VW. It’s fascinating as it is complex.

• A Tesla in full self-driving mode drives through this obstacle. Yeah, that’s not good.

Video Of The Week

The guys over at TFL test an underrated 4X4 that you should love. Here’s more.

In The Know

Will this be Volvo’s savior?

We rarely discuss Volvo in this newsletter, and it’s not because we dislike the brand. Instead, the Swedish company’s woes have relegated it to the automotive industry's silent corner.

After all, as this data shows, Volvo was performing well during the 2010s, but then it drifted away.

Why?

The company was making two big bets: EVs were the future, and China would become an important market (Volvo has been owned by the Chinese conglomerate Geely since 2010).

For years, this bet was paying off, as the data revealed. However, in the past two years, the automotive market has changed so much that Volvo has been unable to react.

The US rolled back its support for EVs, and the Chinese market became important, but didn’t necessarily buy Volvos.

Then came tariffs. 

They rattled the Swedish company, making it too costly to be competitive. With a dwindling market (or so it seemed), and adverse conditions, the company has taken losses quarter after quarter, as you can read here.

Yet, we mustn’t forget that Volvo is still an important brand. Its security advancements set trends and earned it a reputation as one of the safest brands available. Although Volvo has even had to relinquish this honor, as this article explains.

Volvo was sure that somewhere, out there, were fans of safe, luxurious, and sober vehicles. It just had to find the right equation to attract them. Would it be EVs or internal combustion? Sedans or SUVs, or something crazier?

It turns out sedans aren't the “it” answer.

Instead, it’d be a sober, elegant, practical small SUV packed to the brim with extras, power, and range: the EX60.

The equation worked, as the hype was such that Volvo had to increase production to meet the sheer number of reservations that came in, as you can read here.

In just a month, the EX60 exceeded expectations thanks to everything it delivers, but what does it feel like in real life? It turns out that, as this review highlights, it’s one of the most important vehicles for Volvo in the past 100 years.

Edmunds believes the EV60 has a chance of being the “top-dog” in the EV SUV segment, and that’s no easy task, especially with so much competition.

Ultimately, sales figures are the only indicator that matters for Volvo at the moment. The company needs to overcome big hurdles, and by the looks of it, they will. What do you think?