Volvo goes Cross-Country for image overhaul

VOLVO hopes its new V70 wagon will put another nail in the coffin of the stodgy image it has worn since the early 1970s.

The newcomer will play a key role for Volvo as the outgoing V70 accounted for almost a quarter of the marque's sales here last year.

The company's biggest selling range - the S40/V40 line-up - will make way for an updated range in August and it will be followed in September by an all-new Cross-Country wagon.

Volvo says the Cross-Country will be a key model as it strives to establish a greater presence in the "lifestyle" segment.

Athough badged as a V70, the Cross-Country will be marketed as a separate entity. This is because Volvo wants the Cross-Country to capture buyers from the four-wheel drive segment rather than cannibalise sales of its V70 siblings.

Further down the track, the slow-selling S70 will make way for the sleeker, sexier S60 in early 2001.

Slightly smaller than the S70, the S60 will make its debut at the Sydney motor show in November.

It will be positioned between the BMW 3 Series and 5 Series and use an all-five-cylinder engine lineup.

Although sharing its platform with the V70, the S60 will be a "completely different car", according to Volvo.

The S60 is expected to lift sales to levels well beyond the staid S70, which found less than 400 buyers last year.

The newcomer may also further alleviate Volvo's identity crisis.

The Swedish car-maker - and its drivers - have been the butt of many jokes over the years, thanks largely to the safety-first philosophy embraced by its designers.

Buying a Volvo was seen as a logical decision in which passion or aesthetic appeal played no role.

However, Volvo management has realised it is being left behind by rival manufacturers such as Mercedes-Benz and BMW, whose cars offer not only high safety levels but also style, performance and driving pleasure.

Consequently, Volvo chief designer Mr Peter Horbury has endeavoured to put a bit more pizazz into the Swedish marque after three decades of boxy-looking offerings.

The slinky C70 coupe and flagship S80 sedan - launched in 1998 - were the first signs Volvo was making a concerted effort to shed its pipe-and-slippers image.

Volvo is now embarking on a self-deprecating marketing campaign that pokes fun at the negative publicity the marque has attracted over the past few decades.

The company's new approach was reflected by a T-shirt worn by Volvo Car Australia managing director Mr Jan Eriksson.

The message on the shirt read "I'm a bloody Volvo driver", a tongue-in-cheek reference to the popular perception that Volvo drivers are hat-wearing traffic hazards.

This perception is gradually diminishing, which is why Volvo can afford to make light of it.

As part of its revised marketing plan, Volvo Car Australia is also restructuring its dealer network in Sydney, having recently parted company with Scuderia Veloce Motors.

The company plans to set up three hub dealerships in Sydney - one each in the northern, southern and western suburbs - with three additional satellite service centres.

Volvo aims to sell 4000 cars here this year, a slight increase on the 3463 sales it notched up in 1999.

Mr Eriksson says there will be no change in pricing even after the GST is introduced on July 1. But he warns of a price rise later in the year brought on by unfavourable exchange rates.

Volvo introduced post-GST pricing in mid-1999, a move that caused some controversy within the industry.

Some rival manufacturers suggested the initiative was a thinly disguised attempt to revive sagging sales through discounting.

Audi and MG are among the car companies who have subsequently joined the post-GST pricing bandwagon.