Volvo Looks Back on Success and Failure in 2012

VolvoVolvoSweden, 1927 > present49 models
4535 photos
6 videos
had a very odd year in 2012. Its overall sales fell 6.1%, but the US, its largest market, grew by 1.2%. It blames the downturn both on the weakening of the European market and partially its own poor planning for phasing out the C30Volvo C30Sweden, 2006 > present111 versions
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, S40Volvo S40 Gen.2Sweden, 2004 > present82 versions
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and V50Volvo V50Sweden, 2003 > present89 versions
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and the slow launch of the new V40Volvo V40 (modern) Gen.1Sweden, 2013 > present214 versions
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.  

Volvo sold 421,951 cars in 2012 worldwide, which was down 6.1% compared to 2011. The United States, its largest market, was up 1.2% at 68,079 cars. It is still the largest automaker in Sweden with 20% market share, but sales were down 11.3% to 51,832 cars in 2012. Sales also fell in China by 10.9% to 41,989 sales. 

It expects to bounce back in China next year. It accepted a €922 million loan from the China Development Bank. It will launch the V40 there early next year and will open a new factory in Chengdu in the second half of the year. 

Volvo has begun phasing out the C30, S40 and V50 models around the world, which has caused a significant decrease in sales. The upside of this is that Volvo is in the middle of creating a whole new model lineup that will replace these cars. While all of these new cars will not be available in 2013, the process is starting this year. 

The future for Volvo is efficiency. The company has had great success with its V60 Hybrid, and it says that all of its cars in the future will use four-cylinder engines. It is also updating its factories in Sweden to build the new models. 

Next year, Volvo plans to launch new versions of the V40 and launch the first engines and platforms of its new products.