Volvo's hopes for S90 flagship

ESTEPONA, Spain -- Volvo Car USA expects to sell about 15,000 of its new S90 flagship in a full year and capture about 5 percent of the midsize import sedan segment.

Volvo estimates the S90, which goes on sale next month, will compete in a segment of about 300,000 vehicles, said Anders Robertson, product manager for the 90 cluster at Volvo Car USA. The 90 family includes the XC90 crossover that went on sale last year, the S90 sedan and its T8 plug-in electric variant, the V90 station wagon, V90 Cross Country and most likely a long-wheelbase model.

The larger and roomier S90 replaces the S80 developed when Volvo was owned by Ford Motor Co. The S90 rides on a new scalable platform and uses a new family of four-cylinder engines.

Volvo sold 1,887 S80s last year, and sales peaked at 12,347 in 2007, according to the Automotive News Data Center.

Pricing starts at $47,945 for the S90 T5 Momentum with front-wheel drive and a turbo inline-four engine with 250 hp. It increases to $57,245 for the all-wheel-drive T6 Inscription with 316 hp. Both prices include shipping.

Robertson said most buyers will be conquests. He expects the S90 to compete with the Mercedes-Benz E class, BMW 5 series, Audi A6, Infiniti Q70 and Lexus GS.

In the United States, Volvo will launch three other 90 variants next year: the V90 station wagon, the V90 Cross Country and the T8 plug-in hybrid sedan. Volvo did not provide timing or pricing for the other models. The company expects to sell about 1,000 station wagons annually in the small segment in which very few Europeans compete, Robertson said.

The V90 Cross Country, which rides higher than the station wagon or sedan, will replace the XC70 that goes out of production this year, Robertson said. Volvo sells about 5,000 XC70s a year in the United States and hopes sales of the new Cross Country can reach that level, he said.

Another model is possible -- an extended-wheelbase S90 primarily for China where similar sized E-class and 5-series cars are sold. Although that car's size will approach that of vehicles in the next larger segment, Volvo will not compete with the Mercedes-Benz S class or the BMW 7 series because that segment is so small, said Peter Mertens, senior vice president of r&d for Volvo Car Corp. 

But Volvo won't rule out a crossover larger than the XC90 that would compete with the Mercedes-Benz GL or upcoming BMW X7 when it completes its product cycle renewal in three years, Mertens said. 

"It is possible, yes, but it is not yet in the plan," Mertens said in an interview. "Of course a larger SUV would be very competitive." 

Mertens said the S90's fwd configuration, which is standard, won't affect the car's competitiveness. Awd is optional. He said the chassis setting reflects Volvo's goal of "relaxed confidence." 

"There are still some competitors that think this segment is about race cars," or those with settings like sofas, Mertens added. 

The Cross Country variant will have a "completely different chassis," but it's too early to disclose specifics other than the car will ride higher than the sedan but lower than the XC90 crossover, he said. 

"It is not a niche," he said. "Globally it is a good segment for us." 

The S90 has standard semiautonomous features that operate at speeds up to 80 mph and use road markings rather than follow the vehicle ahead. 

Mertens said a new standard feature helps prevent the car from running off the road. 

Options will include apps such as Apple CarPlay and Stitcher radio service. 

Volvo is especially proud of the S90 interior, which features an uncluttered look with Scandinavian touches such as a crystal shifter. 

"If you look at the interior and the fit and finish, this is about light and roominess and nature," said Mertens. "If it looks like aluminum, it is aluminum. If it looks like wood, it is -- it isn't plastic."