The 2021 XC40 Recharge P8 begins at $54,985, together with delivery. Tax incentives for EV consumers would decrease the worth by not less than $7,500. Whereas the Tesla Mannequin Y begins at $51,190, together with vacation spot, it doesn’t qualify for the credit score.
Beating the Mannequin Y on value earlier than different European luxurious rivals could be key to Volvo’s potential success in that phase, stated Sam Fiorani, vice chairman of AutoForecast Options.
“The XC40 is an excellent small crossover in its personal proper, and including the ability and driveability of an electrical drivetrain at a modest value ought to discover a market,” Fiorani stated.
However in one other essential metric, Volvo will get lapped. The XC40 EV’s vary of 208 miles trails the competitors. The Mannequin Y leads the pack with 326 miles, adopted by the Jaguar I-Tempo at 234 miles and the Audi E-tron Sportback at 222 miles.
If Volvo executives have vary anxiousness, Gustafsson is not displaying it. “Primarily based on how our clients can cost the automotive, I feel [range] shouldn’t be going to be a priority,” he stated.
Volvo is betting the brand new mannequin will assist maintain a strong restoration from the coronavirus shutdowns this yr.
The model’s U.S. gross sales have picked up sooner than these of its European rivals and the general trade. Within the first 9 months, Volvo gross sales are down 5 p.c yr over yr in contrast with BMW’s 24 p.c stoop, Audi’s 22 p.c slide and Mercedes-Benz’s 12 p.c decline. Within the newest quarter, Volvo outsold Ford Motor Co.’s luxurious Lincoln model by practically 2,800 automobiles. Ford owned Volvo from 1999 to 2010.
Volvo’s gross sales rebounded from the COVID-19 stoop in June and has seen year-over-year beneficial properties in each month since.
“We determined early to be very aggressive within the southern a part of the nation,” Gustafsson stated. “So the primary two or three months, the area was actually the locomotive of the corporate.”
Volvo rapidly carried out new working procedures to assist its sellers promote automobiles safely, together with digital retailing, no-contact car pickup and supply, carrying masks and facility cleansing.
In March, the automaker launched Volvo Valet, a cellular app that enables shoppers to schedule pickup and supply of automobiles for service or upkeep. The companies are supplied by 208 of Volvo’s 282 U.S. sellers.
Volvo additionally acted early to safe provide — practically 90 p.c of Volvos offered within the U.S. are in-built Europe. The automaker prioritized manufacturing for the American market earlier than the annual European summer time shutdown.
“We had been satisfied that the U.S. was going to see a V-shaped restoration by way of car demand,” Gustafsson stated.
Gustafsson is optimistic the retail momentum will proceed.
“We’re seeing good curiosity on our web site, we see constructive developments on ground site visitors,” he stated. “The vessels are stuffed with automobiles — and precisely the automobiles that the sellers are asking for.”
— to www.autonews.com