Volvo says retailers will soon get XC60 relief
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CHICAGO -- Volvo’s U.S. retailers will receive 5,000 to 6,000 more XC60 mid-sized crossovers this year as a result of the company’s production boost in Europe.
Dealers have complained that limited supply of the XC60 has dampened Volvo sales. John Maloney, CEO of Volvo Cars of North America, says that they will get more volume this year, and still more in 2013 and beyond.
Last fall, Volvo made investments in the model’s factory in Ghent, Belgium, including adding 200 workers, to increase production. Maloney says the investments will translate to 12,000 more vehicles a year for various markets starting this year.
For the past year, Ghent has run three shifts a day to meet demand, producing the crossover, S60 sedan and other models.
“The XC60 is product that’s been in the market for three years that has been over demand and undersupplied,” Maloney said today on the sidelines of the Chicago Auto Show. “So this year, our supply goes go up, which our dealers will welcome. It’s a hot product.”
Longer range, Maloney says that a plant under construction in China will also mean more vehicles for U.S. retailers. The plant will supply the Chinese domestic market, he said, but that will let Ghent divert more production to the United States.
He said the Chinese plant will start production in 2013.
Volvo’s U.S. sales rose 25 percent in 2011 to 67,240.
You can reach Lindsay Chappell at lchappell@crain.com.
