Volvo Sales Collapse 18% in January

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By Douglas A. McIntyre Updated Published
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Volvo Sales Collapse 18% in January

© courtesy of Volvo Cars

Volvo, bolstered by new models and generally good reviews of its cars, was supposed to nudge its way into the higher end of the U.S. car market. Those plans fell apart in January as its sales dropped 18.2% year over year to 3,472.

Sales of its flagship “All-New XC90” fell 34.5% to 1,556. The only model that demonstrated strength was the S60, with sales that rose 30.8% to 595.

The XC90 is Volvo’s crossover.

Consumer Reports researchers wrote last year:

Once the icon of restrained luxury and bank-vault safety, the Swedish automaker Volvo fell on tough times, seeing sales slump because of an aging, uninspiring model line. Now flush with an $11 billion cash infusion from its Chinese owner, Geely, Volvo’s XC90 flagship SUV represents a make-or-break moment, its executives admit. The XC90 could be the vehicle that wins back those who walked away and attracts those who never thought they would find a Volvo in their garage.

When automakers say that a car is “all new,” they’re usually fibbing. It can mean just a nip and tuck of sheet metal or some refined interior-trim pieces.

In the case of the 2016 Volvo XC90, though, Volvo is boasting about a new vehicle platform that will spawn a slew of other models, a new engine and transmission family, and a new infotainment system that could pass for an iPad by Ikea. If you want to brag to your neighbors about your totally brand-new car, this is it.

The “winning back” part does not seem to be working.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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