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Current-generation Volvo XC90 will be sold alongside its successor

Volvo's next-generation XC90 sounds like it will be more of a revolution than a simple evolution — even the name will change. The firm doesn't want to alienate buyers, so it will sell the current-generation model alongside its replacement for at least a couple of years. Allegedly called Embla, the XC90's successor will inaugurate an evolution of the existing SPA2 platform and a number of driver-assistance features. Some rumors claim that it will be offered exclusively with an electric powertrain. Keeping the second-generation model around is a way for Volvo to prevent buyers who don't want an electric car and who don't need the latest and greatest tech features from going to the competition. Making the two people-movers in separate factories will ensure that both can be built without creating logistical issues. "That is an advantage of building the new one in Charleston, South Carolina. Why should we close down the old one in Torslanda when you still have a market for hybrids, especially in America and in China?," said outgoing company boss Hakan Samuelsson in an interview with Automotive News Europe. He stopped short of saying precisely how long the current-generation XC90 will remain in production for, however. Far from worrying about internal competition, Volvo plans to give the XC90 at least one more update in order to help it fend off a growing list of rivals, especially in key markets like the United States. "We will even look into upgrading it so it looks a bit better," he told the publication. As of writing, it's the oldest member of the Volvo range: it spearheaded the brand's revival when it made its debut for the 2016 model year. More information about the XC90's replacement will emerge in the coming months, and we expect to see the model in late 2022. When it lands, it will be clearly positioned as Volvo's flagship, a spot that the XC90 has occupied since the first-generation model arrived in 2002. As new cars become more advanced and correspondingly more expensive, keeping an older model around as a budget-oriented option is a strategy that's slowly gaining ground. Porsche confirmed that the current- and next-generation versions of the Macan will coexist for a few years for reasons not unlike Volvo's. Ram keeps the last-generation 1500 in its range and charges $6,385 less for it than for the new model. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Volvo Cars plans $20 billion stock IPO this month, sources say

STOCKHOLM — China's Geely Holding is in advanced discussions with banks to list its Volvo Cars unit in the coming weeks, three sources told Reuters, in what is expected to be one of Europe's biggest initial public offerings (IPOs) this year. Volvo Cars is aiming for a valuation of about $20 billion in the planned Stockholm listing, the sources said, with one saying the launch was penciled in for the end of September. Goldman Sachs and SEB are leading the transaction, while other banks including BNP Paribas, Carnegie and HSBC are also involved in the deal, the sources added. Volvo Cars declined to comment. Geely did not immediately respond to an emailed request for comment outside normal business hours in China. SEB and Goldman Sachs declined to comment. The other banks were not immediately available. Geely, which bought Volvo from Ford more than a decade ago in the biggest acquisition by a Chinese firm of a foreign car maker, sought to float shares in the Swedish firm in 2018 but then pulled the deal citing trade tensions and a downturn in automotive stocks. Traditional carmakers have fallen out of favor in recent years, as Tesla has risen to be one of the world's most valuable companies, putting the focus on electric vehicles. Many European firms have pivoted toward the electric sector, including Volvo, which aims to only make fully electric cars by 2030 and owns a 49.5% stake in electric car maker Polestar. Valuation Gothenburg-based Volvo Cars aims to secure a valuation of roughly $20 billion, one of the sources said, while another mentioned a possible range of $20 billion to $30 billion. A third source suggested a $16 billion valuation was more realistic, citing the firm's revenue outlook. A $20 billion valuation for Volvo would be equivalent to six to seven times its earnings, a level some analysts say is high although it would put it in line with rivals Daimler and BMW. Tesla's valuation is more than 70 times that. NordLB's automotive analyst Frank Schwope estimated a valuation range of $10 billion to $15 billion. "The strong margins seen in the first half of 2021 are unlikely sustainable as the market benefited from a strong post-pandemic rebound that is unlikely to continue," Schwope said. For Geely's founder Li Shufu, who bought Volvo for $1.8 billion, the listing is a milestone on the road to transport of the future, where cars are part of an electrified network of mobility services generating data and business opportunities.

These are the top luxury cars bought by people entering the segment for the first time

Let's say you just got a big promotion at work or the kids are moving out of the house, and you finally have some extra money. You decide to blow it all at once and treat yourself by upgrading your ride. Naturally, you look to a luxury automaker. What do you choose?
Models like the Audi A3 and Mercedes-Benz CLA-Class may be tailor-made to introduce buyers to the premium segment, but a new study finds that they don't garner the highest rates of non-luxury customer conquests. It turns out that a Volvo leads among folks moving up to a premium brand, and it isn't even one that's made anymore, at that.
A recent study by Polk and IHS Automotive looked at what models had the highest rates of buyers upgrading from a non-luxury segment. The information comes from its new vehicle registration data through April 2014. All ten top models boasted conquest rates of over 50 percent, but the Volvo C70 led the field with 68.01 percent of its customers coming from non-premium brands.