Volvo axes XC90 V8

VOLVO has axed the slow-selling V8 and entry-level versions of its XC90 in Australia, as part of an MY12 range reshuffle that brings more standard equipment and price cuts across the Swedish brand’s seven-seat luxury SUV range.

Reduced from eight variant to just four, the MY12 XC90 line-up now opens at $69,990 (plus on-road costs) for the updated 3.2 R-Design, which costs $4460 less than before but $40 more than the discontinued XC90 3.2.

Despite the near-$4500 price reduction the 3.2 R-Design now comes as standard with Volvo Navigation System (VNS), which was previously a $4175 option, and a reversing camera (previously a $795 accessory), which Volvo claims represents $9340 worth of added value.

The mid-range XC90 3.2 Executive is now also $4460 cheaper at $71,490 and also gains VNS and a reversing camera as standard, along with speed-sensitive steering and water-repellent front side windows.

Similarly, the most affordable XC90 diesel now cost $40 more than before, following the discontinuation of the entry-level D5 (previously $72,950) and a $4460 price reduction for the XC90 D5 R-Design, which now opens the diesel range at $72,990.

The flagship XC90 D5 Executive is likewise $4460 cheaper and now tops the XC90 range at $74,490, following the discontinuation of the XC90 V8 R-Design and Executive models that previously topped the XC90 range at a respective $89,950 and $91,450.

Volvo says the move to discontinue the XC90 V8, which follows the axing of V8-powered versions from the MY11 S80 sedan flagship released late last year - is due to slow V8 sales, which numbered only about 20 so far this year.

Standard R-Design equipment for both 3.2 and D5 models continues to include power-adjustable front seats, an auto-dimming rear-view mirror, rain-sensing windscreen wipers, a Premium sound system, rear parking sensors, speed-sensitive steering, water-repellent front side glass, Active Bending Lights (ABL), silver roof rails, Bluetooth connectivity, 19-inch alloy wheels, Air Quality System, electrically retractable (heated) wing mirrors with puddle lights and front/rear foglights.

R-Design model are distinguished from the Executive versions by a unique grille, scuff plates, dual exhaust outlets and silver mirrors. Inside, the R-Design models offer R-Design embossed leather seats, R-Design inlays for the door-handles and centre console, an R-Design sports steering wheel and gearshifter, and R-Design floor mats.

As before, Executive models add a number of exclusive features, including heated front seats (with massage function and ventilation), unique 19-inch ‘Galateia’ alloy wheels, ‘Sovereign’ hide upholstery, walnut inlays for the door-handles and centre console, a wood steering wheel and gearshifter, and plush carpet floor mats.

The Bluetooth connectivity system for all XC90s now includes audio streaming.

At the halfway mark of this year, XC90 sales were 2.0 per cent down in a luxury SUV segment that was 3.9 per cent slower than the same period last year.

To June 2011, the XC90 held a 4.6 per cent share of the segment with 635 sales, putting it behind Audi’s top-selling Q5 (10.9 per cent), the BMW X5 (10.2), BMW X1 (8.3), Mercedes-Benz M-class (8.0), Land Rover Discovery (7.4) and Volvo’s own smaller XC60 (7.0), an MY12 upgrade for which was also announced this week.

Also out-selling the XC90 this year are the Range Rover Sport (with a 6.2 per cent share), Audi Q7 (6.1), Lexus RX (5.9), Jeep Grand Cherokee (5.8), BMW X3 (5.6) and Land Rover Freelander (4.6).

However, the XC90 has proved more popular so far this year than the Porsche Cayenne (3.0), Mercedes GL-class and R-class (1.3), Volvo XC70 (1.1), BMW X6 (1.0), Range Rover Vogue (0.8), Mercedes G-class (0.5), Lexus LX (0.4) and VW Touareg (0.2).

“The XC90 has been Australia’s top-selling seven-seat luxury SUV for the past four years running due to its exceptional value for money, practicality, versatility and, of course, safety,” said Volvo Car Australia managing director Matt Braid.

“The price revision and equipment additions for MY12 make the XC90 even more competitive in the market, especially with a starting price below $70,000.” Volvo recalled 691 examples of the MY2010 and 2011 XC90 in May due to a possible power steering oil leak, after a smaller number were recalled last year to rectify possible fuel line problems.

MY12 Volvo XC90 pricing:
3.2 R-Design	$69,990
3.2 Executive&nbsp &nbsp &nbsp &nbsp &nbsp	$71,490
D5 R-Design	$72,990
D5 Executive	$74,490