Volvo to be ‘redefined and refined’

Volvo is re-evaluating its model plans and brand positioning under new Chinese ownership with the view to playing to its heritage and strengths and cementing the brand as a more serious contender in the German-dominated premium car segments.

Recently appointed Volvo president and CEO Stefan Jacoby says the brand is not out to build Swedish BMWs but instead build on the brand's strengths and develop a sustainable model range that showcases Scandinavian design.

While he's still only warming the seat having taken over at Volvo in August - the brand was bought by Chinese car maker Geely on August 2, 2010 - Jacoby says he has definite views for the brand.

"We are putting the puzzle pieces together, we re-evaluate all the existing plans, cycle plans, branding, strategy and so on," says Jacoby. "We are establishing and developing a new strategy for Volvo."

He says the new direction will be "much more focused on branding, on the values a Scandinavian brand has to offer".

"That will very much determine our products. We will sharpen our products, we will give them a more distinguished Scandinavian design."

Jacoby says he will not chase sporty dynamics and will not try to copy competitors but instead forge a unique path for a brand long praised for its fresh and functional interiors and groundbreaking safety.

"I don't want to be a follower," he says. "Our strategy will not be copying our competitors, that would be a mistake. And maybe we've done this too much in the past.

"Our strategy will be to find a unique interpretation and our unique specification of what we think should be in a premium car."

Jacoby says he will simplify the model range and potentially drop some slow selling cars, with the quirky C30 three-door hatch likely to be high on the list.

"I think we should not be in all segments," says Jacoby. "We are too complex right now. We tried too much to copy what our competitors are doing. Within the model range we have to significantly rationalise."

Volvo is rumoured to be working on a small SUV likely to be called the XC30. While Jacoby wouldn't elaborate on the prospects of such a model, insiders suggest it's headed for production, bolstering the popular off-road range that currently includes the XC60, XC70 and XC90.

He says the re-evaluation of the Volvo brand and confirmation of a new strategy will take a couple of months.

"I have initiated to redefine and refine the brand Volvo. We need to sharpen this."