Autoblog

click above image for high-res gallery of the Volvo C30 Efficiency

In the wake of rapidly diminishing sales of large and not-particularly fuel efficient cars, Volvo is doing what only seems rational: introducing smaller vehicles with more fuel efficient engines. The company reportedly has plans to introduce three new diesel powered vehicles by the fall. We are unclear on where Volvo intends to target with its little green men cars besides emerging markets such as China and Russia, but we'd love to see some more stylish and fuel efficient options in the U.S. It's too early to speculate on what vehicles Volvo is referring to, but that's never stopped us before. The C30 is currently the Swedish automakers smallest vehicle and at last year's Frankfurt Motor Show, Volvo showed off its C30 Efficiency concept. We'd say that the timing certainly appears right for a production version of just such a machine. After all, who wouldn't appreciate the 52.26 miles per gallon from its 105 horsepower 1.6L turbodiesel engine?


[Source: Just-Auto - sub. required]

As Ford reportedly prepares to offload Volvo and dismantle the last remaining vestiges of its once proud Premier Automotive Group, reports indicate that discussions were, once again, held with Renault.

The French automaker was tipped as a potential buyer when Jaguar was on the table, expressing interest in acquiring a luxury brand (and evidently forgetting it had Infiniti up its sleeve). Along with Chinese automakers, Renault has reportedly been in on-again, off-again discussions with Ford over the sale of Volvo as well, though Ford insists that its Swedish subsidiary is not for sale.

[Source: Automotive News - subs. req'd]

An eternally unanswerable question seems to be whether or not Ford is actively shopping around Volvo for a buyer. Just this week we reported that Chinese automaker SAIC and some Russian investors had expressed interest in purchasing the Swedish carmaker from Ford, but today we learn from a source within SAIC that the company is doing nothing of the sort. The unidentified source said that, as far as he/she knew, the two companies were not in contact about a possible purchase at all. Volvo's staying quiet and licking its wounds after announcing 2,000 layoffs this week, while Ford is singing the same old song with a catchy chorus that insists Volvo is not for sale. Well, the rumor that some Russians are interested in Volvo hasn't been refuted yet, so until someone named Boris says otherwise, let's considerable Volvo on the market despite Ford's protest.

[Source: Automotive News, sub. req'd]

Ford might be looking to sell Volvo to a Chinese company according to a report by Dagens Industri and followed up by Automotive News. Sources are saying that Shanghai Automotive Industry Corp. may be one of the potential suitors, while a Russian investor has also expressed interest in Ford's Swedish arm. FoMoCo's CEO, Alan Mulally began a strategic review of the automaker last year and the possible sale of Volvo was reported to be in the cards. However, Ford denied such a plan at the time and when AN contacted a Ford spokesperson for comment about the report today they said, "We have been consistently saying since the end of last year that Volvo is not for sale. We are focused on improving Volvo's business results."

Regardless, news of the possible sale of Volvo comes on the same day Ford announced that 2,000 workers will be laid off in an effort to cut costs due to an overall weak market and rising material costs. Volvo is hoping to slash around $662 million in costs, with the primary cuts coming from workers in Sweden. 1,200 workers were informed of the cuts today, and overall, 1,400 white-collar staff and 600 blue-collar jobs are on the chopping block.

[Source: Automotive News – Sub. Req.]

Volvo, once the success story in Ford's Premier Automotive Group, has hit choppy waters. And according to Wall Street Journal insiders, Ford is preparing to treat the Swedish automaker the same way it did the English ones: slap some floaties on it and keep the brand bobbing long enough to sell it.

Volvo made $94 million in profit in Q1 of 2007, but lost $151 million in Q1 of this year. In total, over the past two years, the once smiling Swede has lost $1.7 billion, part of which is due to exchange rates, and another is due to selling fewer cars. To combat the decline, Volvo is shedding up to a third of its work force at one European plant, and cutting back on production at another. As you would suspect, both of those plants make the largest vehicles in Volvo's lineup.

A couple of weeks ago, Ford was intriguingly -- or deceitfully -- still in "Volvo's not for sale" mode. Now it appears that Mulally has admitted to some Ford execs that Volvo is about to wear the "Needs a Caring Home" sign. Jerry York, the right hand man of Kirk Kerkorian, maintains that Volvo will probably be sold in 18 months. The way things look now, we'd be surprised if it took that long.

[Source: Wall Street Journal via Yahoo!]

Click above for more images of the Volvo XC70 pickup

Volvo has been known for its safety and practical nature since the company's inception, but what we never expected to see from the Swedish automaker is a sport 'ute. A quick-witted photographer snapped up a few pics of an XC70 outside the Volvo museum in Sweden that has been converted for pickup duty, and it looks pretty damn good. Surprisingly, the Volvo ute looks exceptionally well built, thanks to the efforts of Swedish coachbuilder Dalbo Fordonsteknik. While it won't be confused with an El Camino or Ford Falcon, it has a small but usable bed, a shark fin-like design in profile, and what looks like some covered space behind the front seats.


[Source: Carscoop]

Kirk Kerkorian's associate Jerry York stated last Thursday that Ford would do well to sell Volvo and extinguish Mercury. Coincidentally (or not) Ford's stock zoomed up to one of the highest price levels it's seen in the last six months. Tracinda Corporation, Kerkorian's firm, has expressed faith in Mulally's leadership and his plan to strengthen the automaker. There has been speculation about a sale of Volvo in the past, and punditry has been begging the Blue Oval to do something with Mercury, or put it out of its misery, for years.

While York seems certain that Volvo will be on the market in less than two years time, Ford continues to state that the Swedish subsidiary is not for sale. Looking at the Premier Auto Group shuffle of the last year, though, it could certainly be deduced that Volvo will indeed go on the market soon. Moving the brand out of the PAG location in Irvine, CA and back to Rockleigh, NJ, where Volvo had set up shop when it first started selling cars in the United States, is a move that set off whispers of impending sale. While it might be nothing more than right-sizing office space for Volvo now that the rest of the Premier Auto Group is gone, a cross country move is a deft way to trim operational fat without layoffs, and divorcing Volvo's North American operations from Ford locations makes an ownership transition easier, too. While Ford and Volvo products share a lot of engineering and parts, a well-negotiated deal wouldn't preclude a sale that gently phases out the currently entwined platforms as they age and replacements are brought to market.

[Source: Automotive News - sub req. - Photo: Bloomberg]

At New York's Cipriani restaurant on 42nd Street, Volvo presented its sixth annual Volvo for Life Awards and named Marilyn Adams the Grand Award Winner in the Safety category. The panel of judges -- including Hank Aaron, Sen. Bill Bradley, Maya Lin, Dr. Sally Ride, Dr. Mae Jemison, Eunice Kennedy Shriver, and Edsel B. Ford II -- selected Marilyn because of her Farm Safety 4 Just Kids organization that teaches, as you guessed, farm safety for the young'ins'.

Two decades ago Adams' 11-year-old son was killed in a gravity flow wagon on the first day of the harvest. Inspired by her loss, and by the realization that kids between the ages of 5 and 14 were 66-percent more likely to be injured in a farm accident than adults aged 45 to 64, she started the non-profit Farm Safety Just 4 Kids. The organization has thousands of volunteers across America and Canada teaching rural kids how to stay safe and healthy. For her efforts, Adams's organization gets a $100,000 contribution from Volvo, and Adams will receive a new Volvo every three years for the rest of her life.

The other top category winners in Environment and Quality of Life, Matthew Sanford and Lorraine Kerwood, each get $100,000 donated to their work. Volvo also named ten-year-old Zach Bonner of Valrico, Fla., the winner of the Alexandra Scott Butterfly Award and presented him with $25,000 for a charity of his choice.

[Source: Volvo]

Click above to view high-res gallery of the Volvo C30 R-Design

Following up on our story about the Volvo C30 R-Design at the New York Auto Show, Volvo announced pricing today for its sporty hatchback tunerish trim level. MSRP will be $25,700, plus destination charges of $745. Doing simple math, you can put one of these hot turbocharged Swedes in your garage at a base price of $26,445. Of course, most of you will want to add available goodies such as the DVD-based navigation, bi-xenon headlights, or the Dynaudio premium sound system...and they'll cost you extra, which will balloon the price into what many consider too dear for a Swedish hatchback.

If a cosmetically-enhanced C30 is just your thing, however, we suggest you act fast. With a production run limited to just 400 examples, the exclusive R-Design will probably roll quickly out of showrooms starting in April.

[Source: Volvo Cars of North America]

Click above for high-res gallery of the 2008 Volvo XC70

The Volvo XC70 recently spent some time in the Autoblog Garage, and while we liked the vehicle overall, we had a few major complaints: its high price, poor gas mileage and a noticeable lack of power. At least one of those issues will be rectified somewhat this fall when Volvo begins offering the turbocharged 3.0-liter inline six-cylinder engine for the XC70. This engine is already available in the S80 sedan, and since the V70 and XC70 use similar chassis architecture, it was only a matter of time before the T6 engine migrated down the line. The 281 horsepower of the T6 engine should offer a useful improvement over the standard 235 horsepower 3.2 liter six. According to AutoWeek, the T6 model will be the crossover's flagship, so it seems unlikely that the 311 horsepower V8 will show up underhood any time soon. Power often covers a multitude of sins, so we're betting that the boosted-six will prove to be a popular option among buyers.

[Source: AutoWeek]