New CEO says it is "too early" for the firm to build to a rival to the BMW 7-series

Volvo’s new CEO Stefan Jacoby has said it is “too early” for the firm to be building a rival to compete with the BMW 7-series and Mercedes S-class.

His comments follow those made by Volvo parent firm Geely’s boss, Li Shufu, when the firm acquired Volvo from Ford earlier in the year. He said he wanted to see the Swedish car maker make more “high-level cars that compete with the Mercedes S-class and BMW 7-series”.

But Jacoby said such a car “is a step too early” and would only be considered after “we have reached our goal of 800,000 sales”.

Read more on Volvo's plans for a 7-series rival

Shufu reckons Volvo has the technology and research capabilities to compete at the top end of the market as well as demand higher retail prices. Shufu has also made it clear that a push into the booming Chinese car market would demand luxury that Chinese customers could “see through their eyes and touch with their hands”.

Geely paid just over £1bn to buy the loss-making company and wants to more than double sales from last year’s 335,000 units. Volvo made losses of around £400m last year, but says that a relatively modest increase in sales should tip it back into profit.

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1 November 2010

A wise decision. I agree that Volvo isn't ready, not just in terms of fulfilling sales expectations, but also handling, ride comfort and luxurious interior design are all inferior to the rival cars from Jaguar, Mercedes-Benz and BMW.

1 November 2010

should stick with what they know for now, until a good few years of solid profit.

Maybe consider going back to producing excellent load luggers but with just a bit of style - and remain an "alternative" choice.

To live is to drive

1 November 2010

The problem is that the Chinese market demands don't match with Europe's at this time.

The Chinese bosses obviously saw Volvo as a premium brand for their home market - after all Geely already have the " popular" end of the market covered.

There is going to be a bit of conflict here, and it will be interesting how long Stefan Jacoby will withstand the pressure.

Chinese bosses are not the same as Jaguar/Land Rover's Indian bosses. They will want their 7-series and S-class competitor within a short time schedule.

1 November 2010

Here we go again the 10 yearly denial from Volvo that they will not do a 7 series S class competitor....They don't get it that they could do it and be very good at it but super luxury is a dirty word in Sweden as they all want to wear wool shirts and wear pieces of flat leather tied up with string a shoes . The volvo brand is stronger than they believe in the far east and the Chinese would leap at a 7 series Audi A8 competitor and just think of the size of wagon that would give you for Europe that fits with the brand image over here?? Come on Volvo stop putting yourself down and be proud and showoff a bit!!

1 November 2010

Qiute right too!, we have a seven series,BMW make it, lol!

Peter Cavellini.

1 November 2010

There is no need for Volvo to rush into new and expensive markets like a 7 -series rival, just ensure that it maximises its traditional market strengths and take it from there. I expect the impatience will come from the chinese who will see Volvo as a chance to break into this market in their own country.

1 November 2010

Yet again Autocar seems to have missed the fact that Volvo has made a profit in each of the last three quarters, so to continue describing the company as loss making is just plain wrong.

1 November 2010

Here here Yellowbelly Most of Ford's profit came from Volvo.

2 November 2010

Lets be honest, Volvo have just overhauled its engine range, facelifted the C30,S40 & V50, released the new X60, S60 & V60, gave the S80 a mild overhaul last year, they have not exactly been slacking and they have as stated produced a profit in the last 3 quarters, not bad going for a small "alternative" company, who had an uncertain future under Ford ownership and have just been sold. Well done Volvo.

17 November 2010

I agree with Stefan Jacoby. Volvo is not in a state to move upmarket. They are in the same league as Ford and Opel/Vauxhall. If they do this they will have the same catastrophic effect as the Phaeton from VW experienced. Sales weren't high and depreciation was heavy. I believe as Geely is such a major player in China, they should get the platform of the S80 and stretch the wheelbase to create their own unique branding there. Geely is best sticking to Volvo as a smaller and more focused brand in Europe and America. I believe they need to help Volvo revise the S80 which is a nice car but it has nothing else to give a better impression. Possibly if Volvo created a Fiesta rival, it would be a great move forward.

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