Volvo may drop S40

[ifcar]

http://blogs.cars.com/kickingtires/2007/10/volvo-may-drop-.html

Volvo May Drop S40 Sedan

The automotive market is a tricky one. Trends are constantly changing and models are dropped for various reasons, like slow sales or even a new CEO?s whim. One recent rumor we heard was that Volvo?s introductory sedan, the S40, was heading to the chopping block. That bit of news deserved some investigation.

The S40 sedan will indeed remain in the Volvo lineup for at least three years, but may be dropped from the lineup after that time period. Current plans call for the V50 to remain in the lineup longer than the S40, should the S40 be dropped. Volvo isn't sure it needs a three-sedan lineup ? small S40, midsize S60, large S80 ? especially because the S60 and S80 are similar in size. One of the scenarios under consideration is to drop the S40 and have a scaled-down version of the current S60 to cover the market where the S40 and S60 now compete, leaving the upper end to the S80. "This is one of many scenarios," a source said. "Don't take it to the bank yet."

"It makes sense to consolidate because everyone else in the auto industry is consolidating," said Joe Phillippi of AutoTrends, an automotive consulting firm.

"Volvo doesn't need three sedans,? Phillippi said. ?The new C30 can serve the purpose of attracting younger, less-affluent buyers than the S40 now does. It costs a lot of money to refresh a car like the S40 every five years, though at Volvo it's more like six years, and money is very important to Volvo and any eventual partner." The Swedish automaker is owned by Ford but may be sold to help fund the company?s North American turnaround.

"Any new partner may not want to invest the money it would take to support three sedans, which is a very expensive proposition," Phillippi said.

[omicron]

Length

S40: 4468
S60: 4603 (+135)
S80: 4851 (+248)

Wheelbase:

S40: 2640
S60: 2715 (+75)
S80: 2835 (+120)

Width:

S40: 1770
S60: 1813 (+43)
S80: 1876 (+63)

The S40 does seem to be quite close in size to the S60, but then again, with the trend towards upsizing for each new model, a new S60 would put that model closer in size to the S80 and change Volvo's problem entirely.

I do question the point of deleting the S40, then decreasing the size of the S60 to that of the S40. If the S60 and S80 are closer in size, wouldn't Volvo be better served by deleting the S60, and ensuring the next generation C30/S40/V50 are hatchback, sedan and wagon versions of each other, rather than entirely different cars?

[Maxxum]

Also in terms of sales, do they sell that many S80s? In that price range, the customers are almost always brand conscious and picky. I am not sure which of the three sedans brings them the most profit. It could be that one S80 = 2-3 S40s in terms of profit.

[Vinsanity]

wow. That sucks if they ax the S40. I like it better than the S60, and it actually feels roomier inside thanks to its tall profile. But alas, the S60 is Volvo's "bread-and-butter" product, and its sleeker shape is an asset to the Volvo lineup. But I agree that the S80 poses more of an issue to the lineup than the S40. First of all, there are many more S40's on the road, and secondly, although I'm a Volvo fan, the S80 doesn't compare very well to its competitors (although I was at the Volvo dealer yesterday watching a promotional video, and the car does have some neat features like the blind spot detector thing).

Volvo has had a 3-car lineup going back to the early 90's: 240, 740, and 940. The 740 and 940 were the ones stepping on each other's toes, and those are carried on today by the S60 and S80. So if anything, consolidate the S60 and S80 into a somewhat of an outlet-store Mercedes E-class type car

[Laconian]

Zuh? What about the V50? If it's sticking around, they'll have to continue updating it, right?

[BimmerM3]

I agree that they should either eliminate the S60 or S80. I like the S40, and it's complete shit if they really think that the C30 can take up the market that the S40 covered. The S40 is so much more... executive looking than the C30.

[MX793]

They'd can the S40 but keep the V50 around a bit longer?  I see way more S40s than I do V50s.

[CALL_911]

They'd can the S40 but keep the V50 around a bit longer?  I see way more S40s than I do V50s.

Yeah, me too.

[Raza]

I've seen maybe 5 V50s.