Automotive News Canada - May 2017 - v2 - 11

* MAY 2017

XC60 launch will cherry pick from Volvo's XC90 experience
Automaker expects
more buyers will
want high-end units

Volvo plans to have a large inventory of higher
XC60 trim levels available at the time of launch,
such as the Inscription model, pictured.
( P H O T O : V O LV O )

By STEPHANIE WALLCRAFT
TORONTO CORRESPONDENT

NEW YORK - VOLVO CAR
Canada is using some surprises from the rollout of the
award-winning XC90 full-size
utility vehicle in Canada for
the launch of the smaller XC60
later in 2017.
The redesigned XC60 compact utility made its North
American debut at the New
York International Auto Show
in April. There, Volvo Car
Canada Managing Director
Alex Lvovich discussed how
his staff and dealers are using
lessons learned since the
launch of the XC90 - the first
model released under the ownership of China-based parent
company Geely, which bought
Volvo Cars from Ford in 2010
- to introduce the company's
newest offering in Canada's
fastest-growing segment.

The Volvo XC60 was introduced
at the New York International Auto Show in April.
( P H O TO : S T E P H A N I E WA L L C R A F T )

MORE TOP TRIMS IN STOCK
Volvo will plan to have more
high-end units in stock at the
XC60's launch because 75 per
cent of XC90s sold in Canada in
the first year were the top-tier
Inscription trim.
"It was something that we
didn't expect," Lvovich said.
"Our customers are not looking
for bare-bones vehicles today.
"XC90 was a great conquest
vehicle for us. We've seen
people come into the brand
from BMW, from Mercedes,
from Land Rover quite a bit,
that we've never seen before.
There's a very different price
sensitivity for those (customers).
"The question with XC60
now, taking it half a step down
in terms of the segment, what
will be that perception of the
equipment. (Our) dealers are
all convinced that it will follow
the pattern of XC90, that people
would want higher trim levels."

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PLUG-IN SALES SURPRISE
Another eye-opening statistic from the XC90, particularly over the last few months, is
higher-than-expected sales of
the T8 plug-in hybrid model.
"We actually increased that
mix to 25 per cent, which to us
is quite incredible," Lvovich
said.
Volvo's entire lineup will be
new by the end of 2018. Lvovich
says that between the current
and upcoming product offerings, the company's arm in
Canada is well-positioned for
growth.
"If you look at the segments
in Canada and you look at the
average in premium segments,
you can see that the (Volvo)
number is below luxury average, so we have further opportunity," Lvovich said.
"I say that we're going to
double volume in four years.
That's 12,000 cars (in total).
That's a realistic number. I
wouldn't call it conservative."
- ANC

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Table of Contents for the Digital Edition of Automotive News Canada - May 2017 - v2