Volvo to Focus on Design and Luxury Before Safety

The Swedish trust-worthy brand turns the wheel towards luxury ahead of safety. The Swedish carmaker Volvo, which built a reputation around security and reliability, aims to broaden its appeal, especially with Chinese consumers, by adding user-friendly comforts and a touch of luxury.

The objective is to increase the company’s sales to more than double, meaning 800,000 vehicles, and challenge German premium leaders like BMW AG, Audi and Daimler AG’s Mercedes Benz. Volvo’s image chance was brought into discussion by CEO Stefan Jacoby. The former VW executive was brought in by Zhejiang Geely Holding Group Co. after purchasing Volvo from Ford Motor Co. last August for the estimated figure of $1.5 billion.

Stefan Jacoby determined that safety advancements throughout the auto industry meant Volvo’s reputation was a diminishing asset. Volvo’s “old timer” image has led Volvo to drop off the favorites list for many Americans. Just 15% of U.S. auto buyers would consider buying a Volvo, compared with 22% for Toyota Motor Corp’s Lexus and 21% for BMW. A lot of Volvo’s ambitions remain on the Chinese market, so the Swedish manufacturer plans to produce a new car designed for China in 2013,as related by

Volvo selected the Chengdu region as a location for a new facility and already has plans to build a second, as well as an engine factory with a capacity of 200,000 to 300,000 motors.

Although the manufacturer decided to improve its looks, Volvo isn’t loosing sight of safety. Furthermore the manufacturer has incorporated in the S60 sedan technology that warns drivers of a potential collision with a pedestrian.
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