Volvo Ads Models to Help Struggling US Dealers image

Volvo announced it will try to help its struggling US dealers by expanding its lineup, increase spending on marketing and rise margins.

Volvo will also decide in the next quarter if it will give up its decision to sell the V60 station wagon in the US, according to Doug Speck, global head of marketing, sales and customer service. The V60 station wagon hit the European market two years ago and, if the company reverses its decision, the model will reach the US market next year.

Volvo is working with its Chinese parent company Zhejiang Geely Holding to develop a small-car platform, which will compete with the entry-level models from BMW and Mercedes-Benz. As Volvo has nothing prepared for the following two years, it is focusing on the four 2014 models, which will be sold in the US.

To help dealers in the US remain profitable until the new models will be introduced, Volvo Cars of North America will implement a new margin program which will begin with the 2014 model year. The margin will saw an increase from 14% to 16% for the XC90 and S80, and from 14% to 17% for the XC60 crossover and S60 sedan.

“We are trying to have a platform for the growth of this brand going forward, and we are trying to improve retailer profitability,” said John Maloney, CEO of Volvo Cars of North America.