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Mike Sinclair13 Jun 2014
NEWS

XC90 to move upmarket: Volvo

Local Volvo boss says next-gen XC90 will move back into the luxury ranks
Volvo will position its next generation XC90 firmly within the ranks of large luxury SUVs. That's the news from local Volvo boss, Matt Braid, more than six months ahead of the all-new seven-seater's first showing Down Under.
Speaking at a media gathering in Melbourne today (June 12), the Volvo Australia boss confirmed the new-generation XC90 will be both more expensive and more comprehensively equipped than the car it replaces.
"It will be a different price offering. It is a completely different car," Braid told motoring.com.au. 
"The current XC90 still does very well in that segment considering it's 11 years old. [But] The new car will be priced higher than the outgoing model without doubt.
"It will be higher specced than the outgoing model so it does place us very much back into the luxury SUV segment," he stated.
The existing XC90 has been a mainstay for the brand across the globe but no more so than in Australia. For much of its 11 year lifespan it has actually increased annual sales and for a long period also market share.
Braid said that he was very pleased with the run-out of the existing model but admitted he expected there would be a showroom gap between the current and new models. 
Existing XC90 stocks are expected to be "depleted" by November, but it may be the end of Q1 next year before the new model hits in volume.
But Volvo Australia will be actively pre-selling the new car, Braid says.
"We want to make the most of the pre-launch activity... We will announce pricing earlier than we normally would... if not on all models then certainly on some models and specs before the launch next year," he confirmed.
The XC90 will be the first large vehicle to go to market under Volvo's four-cylinder only powertrain strategy. It will therefore debut a number of high-output variants of the Swedish brand's new-generation DRIV-e engines.
However, having to compete against six and eight-cylinder offerings from other marques does not concern Braid.
"Well aware that's going to be highly competitive. We'll end up over time having a wider range of engine choices... and spec levels and trim levels and pricing bands.
"You look at what's happening in the European sedan segment and many aspects of the European SUV segment and the other [brands'] four-cylinder offerings are becoming extremely popular.
"I don't think there's reason to be nervous about that or concerned. The new DRIV-e engines that will be coming out in XC90 will be extremely competitive in terms of power and efficiency as well," he stated.
"Customers are changing. [They are saying] I want drivability and I want performance. And as long as you can provide that I don't think there's really a degree now of counting cylinders.
"We'll be comfortable going head to head based on the horsepower, kilowatts and 0-100km/h [acceleration times]," Braid stated.
One model that could be at the top end of the XC90 range in terms of pricing and performance could be a plug-in hybrid variant. Braid says the PHEV version of the new large SUV will spearhead Volvo's foray into vehicle electrification locally
"We're looking forward to the technology. It will give us another string to our bow but also gives us another way that we can present ourselves," he commented. 
"From an availability point of view it won't be [on sale locally] early... [Not] from launch... But we're just trying to see how close after the launch next year... Ideally, some point in 2015," he stated.
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