Volvo Cars Suspends Sedan Sales in the UK: Could North America Be Next?
Volvo Cars has recently announced that it will be suspending sedan sales in the United Kingdom, and there are speculations that North America could be next. The decision comes as the brand’s sales volume has heavily skewed towards SUVs and crossovers, making it less profitable to offer sedans and wagons.
Consolidating the Lineup for Profitability
Volvo had already pulled the S90 sedan from the market earlier this summer, and now it seems to be taking further steps to consolidate its lineup. The brand’s online configurator for the UK no longer includes the S60, V60, and V90 models. This move follows the industry trend of prioritizing SUVs and crossovers, which offer higher profit margins.
Transitioning to Electric Vehicles
Volvo is also in the midst of a transition towards electric vehicles (EVs). Like many other automakers, Volvo believes that EVs will be more profitable and face less scrutiny from government regulators. The company’s marketing efforts already heavily focus on hybrid trims for its sedans, wagons, and crossovers. Additionally, Volvo’s plant in South Carolina is being converted to produce battery-powered SUVs for both Volvo and Polestar, with the first models set to arrive next year.
In a statement to Autocar, Volvo explained, “We continue to rapidly transform our product offer, which means not only moving towards full electrification but also shifting to new platforms and technologies across all our cars. We will naturally need to evolve and consolidate our lineup as we prioritize fully electric cars and make this technological transition.”
Sales Shift Towards SUVs and Crossovers
The decision to suspend sedan sales aligns with the sales trends seen in the market. Volvo’s sedans and wagons have seen a decline in sales over the past decade, while SUV and crossover volumes have doubled. In the United States, Volvo sold 64,921 vehicles in 2015 and saw an increase to 123,424 units by the end of 2021, thanks to the popularity of its SUV lineup.
Global Sales Figures
Volvo’s global sales figures for the first half of 2023 further emphasize the dominance of SUVs in the market. The brand’s most popular car, an SUV, outsold its entire saloon and estate range by nearly 70%. The S90 sedan was the most popular of the discontinued models, with 23,000 sales, followed by the S60 with 18,000 and the V60 with just over 16,000. In contrast, the best-selling Volvo XC60 SUV sold 106,000 units.
The Future of Sedans and Wagons
While Volvo Cars is still selling sedans and wagons in North America, it is uncertain how long this will continue. The brand’s focus on all-electric vehicles and the mounting regulatory pressures make it likely that sedans and wagons will eventually be phased out. However, market demand and potential issues with EV models could sway the brand’s decision.
Volvo has expressed its desire to cater to a consumer base interested in different types of vehicles. This could leave room for sedans and wagons in its lineup. However, current sales figures show a strong preference for SUVs and crossovers among Volvo shoppers.
Conclusion
Volvo Cars’ decision to suspend sedan sales in the UK is a strategic move to prioritize SUVs and crossovers, which offer higher profit margins. The brand’s transition to electric vehicles further supports this shift. While sedans and wagons may still be available in North America for now, it is likely that Volvo will eventually focus solely on SUVs and EVs. Market demand and unforeseen circumstances could influence the brand’s future decisions regarding sedans and wagons.
