Currently reading: Volvo rules out 7-series rival
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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lucasworldcars 17 November 2010

Re: Volvo rules out 7-series rival

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.

Citytiger 2 November 2010

Re: Volvo rules out 7-series rival

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.

Pistachio 1 November 2010

Re: Volvo rules out 7-series rival

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