Next Volvos will move up price ladder

FRANKFURT -- Volvo not only needs to boost U.S. sales, but it must raise prices, too -- and plans to do so on models now in the pipeline, says Volvo Cars CEO Hakan Samuelsson.

"The new vehicles will be more expensive," Samuelsson said in an interview at the Frankfurt auto show.

The redesigned XC90 crossover scheduled to arrive in 2015 will be the first vehicle to close the price gap with European competition, he said. The 2014 XC90 has a base price of $40,615, compared with a starting price of $53,725 for the BMW X5 sDrive35i crossover. The prices include shipping.

"I think the company has no future if we are targeting mass market products," said Samuelsson. "The new vehicles will be more expensive, but only if they deliver something the customer finds attractive."

The brand is viewed as safe and environmentally friendly, but has to add more interesting design "and then people will pay the price," he said.

At the Frankfurt show, Volvo unveiled a design language with the Concept Coupe. Styling cues from the two-door car will be incorporated into the XC90, including the lines, grille and the proportions, he said. The new-generation XC90 will help Volvo reach its goal of 100,000 sales by 2020 "if not sooner," he said.

Samuelsson said Volvo will examine its entire U.S. business strategy in the coming months.

"Nothing will be excluded," he said. "It is fair to say I am not very satisfied. We have to come back in the U.S. market."

Volvo's U.S. sales dropped 6 percent in the first eight months to 44,005.