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Auto blog
Volvo buyers have best credit scores among all auto shoppers
Wed, 02 Jan 2013Experian, the US credit reporting agency, recently concluded a study into the financing and credit scores of US car buyers. One of the prime findings was that Volvo buyers enjoy the strongest credit scores among new car shoppers from all brands (nota bene, these are Experian's own numbers and can differ from other agencies). Unlike the Forbes report on the same story, though, we don't find that surprising at all, nor do we think it necessarily helps Volvo's upscale brand aspirations. The Gothenburg-based carmaker has sold its wares on tank-like safety for decades, so it seems natural that its buyers would be just as safe with and attentive to their credit scores as they are with their choice of vehicle.
Audi was ranked fourth by consumer credit score, Porsche seventh and Mercedes-Benz ninth, yet the fact that Volvo outranks them in this metric is probably a plus to its bottom line but not necessarily its image. It's not unfair to say more people desire those other luxury brands - Volvo itself has admitted as much - and people in the throes of desire have been known to be a little more let-it-ride about things like credit scores. The differences aren't huge, though: compared to Volvo's 818, Audi shoppers scored at 813, Mercedes shoppers 802. Lexus and Acura intenders took the other two steps on the top-credit-scores podium.
Mitsubishi took the honors at the other end of the charts, Experian finding that its potential customers, with an average of 604, had the lowest scores. Mitsubishi was followed by Suzuki and Dodge. On the other side of the financing table, Toyota led the way in how many of its vehicles were bought with bank assistance, followed closely by Ford, Chevrolet taking third place. Also of note, and for whatever it's worth, not one automaker made both the 'top ten by financing' and 'top ten by credit score' lists, but four made both the financing and 'bottom ten by credit score' lists: Chevrolet, Nissan, Kia and Dodge.
Volvo credits China, Europe for first-half profitability
Fri, 22 Aug 2014If everything goes to plan, Volvo might be showing the first signs of a turnaround after several years coping with old products and a staid image. The Swedish brand is imminently launching its next-gen XC90 SUV on a completely revised, modular platform and using a cutting-edge family of engines, and it has even more products to take advantage of the fresh components on the drawing board. "We are excited about the launch of the all-new XC90, which marks the beginning of the re-launch of the Volvo brand," said CEO Håkan Samuelsson in the company's announcement. In the meantime, the business is moving back to profitability and is even forecasting growth through the rest of 2014.
In Volvo's recently released financial and sales results for the first six months of the year, volume was up 9.5 percent to 299,013 cars. On top of that, operating income reached 1.21 billion Swedish krona ($175 million) after posting a loss in the same period in 2013. Net income was also improved to 535 million Swedish krona ($77.4 million), which was also a reversal from a negative last year.
With these great results, Volvo is now forecasting 10 percent sales growth worldwide by the end of the year, and the key to it is a booming market in some regions. China, home to parent company Geely, was up 34.4 percent first half of the year. It's now Volvo's biggest market in the world and helped by exclusive models like the S60L (pictured above) and S80L. "We are growing our presence in China and we expect to sell at least 80,000 cars there this year," said Samuelsson in the company's forecast.
2015 Volvo XC90 is the Swedish future
Tue, 26 Aug 2014It's been months since the Concept XC Coupe debuted at the Detroit Auto Show, Volvo's last show car previewing its all-new 2015 XC90. But the production model is finally here after years of development, and it signals the future of the Swedish automaker with its Scalable Product Architecture modular platform and cutting-edge new engine family.
The 2015 XC90 carries all-new styling, but is still familiar up front, with the company's logo slashing diagonally through its prominent, upright grille. Like the concept, it carries T-Shaped LED running lights through the headlights. The company calls them the "Thor's Hammer" design, an evocative designation that we think is fantastic. Under that new front end is a choice of two quite powerful, but very efficient powertrains. The standard XC90 gets a 2.0-liter turbocharged and supercharged engine with all-wheel drive making an impressive 316 horsepower. Or if buyers want to be a little greener and more powerful, there is the XC90 Twin Engine plug-in hybrid with the same engine, albeit augmented with an electric motor to produce a staggering 400 hp.
The exterior styling is crisp, if not quite as sensual as Volvo's latest concepts, but we think the interior is the real star here, with a dashboard that looks like it came out of a Herman Miller catalog and a unique vertically oriented infotainment screen integrated into its center stack, perhaps taking a cue from Tesla. If the cabin feels as good as it looks, we think a lot of sales are going to be won inside.