The reason why Volvo cars aren't selling here in Malaysia (and the rest of the world) these days.

Anyone know anybody who recently bought a brand  new Volvo? Nope? Neither have I. Why is it? The cars are well designed. The exterior looks pretty good and the interior gets some pretty nifty touches like the floating dashboard and unique switchgear. Everything feels well built but no one seems to be actually warming up to the Swedish brand here in Malaysia.

It used to be otherwise. In the 1980s and 1990s you see people driving Volvos everywhere. They were even the choice for Government officials and companies like using them for company cars. In those days Volvos were priced somewhere like where Volkswagen cars are priced these days, slightly lower than Mercedes Benz, BMW and Audi. Companies like giving the Volvo 240 or the 760 series as a car that sits between the higher priced Mercedes w124 200E and 230E cars. Somehow it showed you your place in the company's hierarchy and Volvos sold a fair bit then.

These days, Volvos are actually priced on par with an Audi, a BMW and a Mercedes Benz. I believe this idea came from the fact that the people who owned Volvo at the time (Ford) thought that it deserved to be in its premium automobile division and deserved to be priced as such. New owners Geely seem to think the same thing. Of course, I happen to know people in America, most of Europe and here in Malaysia seem to think Volvos as indestructible moving bricks. Cars with virtue and safe for families to be transported from one school-run to a supermarket or to a family holiday. Americans bought them in droves and somehow thought the same thing too. But the people at Volvo decided that the brand should go upmarket and cater to the more affluent crowd. I don't think this has worked out fine for them

The first half of 2013 showed that Volvo cars sold 209,118 units of vehicles which is down 5.5% from 2012 of the same period (221,309 units). This data was procured from Volvo car's report which also showed that sales from January to August 2013 dipped 2.5%. And there was also operating losses. This piece of news isn't so bad as Volvo is increasing its market share in China, home to Volvo owner's Geely. But actually elsewhere the brand is doing pretty unwell. I mean do you really see many of the latest crop of Volvo cars in Malaysia these days? I happen to be based in the Klang Valley and I don't see many of them around. 

Why? People here do not want to pay what Volvo wants them to pay. RM221,000+++ gets you the 3series fighter the Volvo S60. BMW is selling the 316i at RM209,000++. Mercedes is selling the W204 c-class at around RM235,000++ these days and Audi is sellling the A4 at RM235,000++. So at these prices why should anyone want to buy a Volvo? Yes they are good cars but most people who buy premium sedans was to show you that they've made it in life and somehow, Volkswagen seem to be able to portray that image here in Malaysia even thought it is actually the Proton of Germany. Lexus has usurped Volvo too. That over embellished Toyota has made inroads in terms of size and style. They are selling a Merccedes E-class sized car at around RM250,000 (the Lexus ES250). 

So Volvo has lost out when it comes to brand and image. The thing about the safety factor is that everyone is 'safe' these days. The latest 2013 Mazda 3 was recently awarded EuroNCAP 5 stars and what does this tell you? Mazda builds safer cars than some Volvos these days. Don't believe me? Just check out the EuroNCAP yourselves.

Driving pleasure? Some people are traditionalists and Volvos are front wheel drive cars and some people who are supposedly car enthusiasts would turn their noses up at these Volvos who are mostly front wheel drive. 

And another quite pathetic point is that models soldier on for ever. The Volvo XC90 has been facelifted a zillion times and is essentially the same, albeit pretty good in terms of practicality, SUV that was launched in the early 2000s. Most Continental car makers have a 7 year model lifespan, Japanese and Koreans use a 4-5 year model lifespan but Volvo seems to be like Proton, coming out with new replacements every decade or so. 

But its the price that is killing Volvo. People just don't want to buy expensive Volvos. And then maybe design. I had a look at the newly launched Volvo V40 here recently and I concluded that the entry level Volvo V40 T4, the one without any bodykit, that is selling at RM174,000+++ actually looks so much like a RM120,000++ Ford Focus. While it looks good in the photos, it does not translate well in the flesh. One must pay RM199,000++  for the V40 CrossRoad for it to look good and at this price you could actually buy a Mercedes Benz A200, which actually looks stunning (even though it rides like a rock). Or you could save your money and buy the cheaper Ford Focus. The V40 is in fact based on this Ford you know.

So while we're still on design, another problem with Volvo is that they're good looking but I have noticed that at the price they wish to sell they are not 'bling' enough. Their cars aren't all sparkly and showy. I noticed that peole want more in their 'expensive' rides. A good example is Audi, every since they started using the 'Novulari' or one piece shield of a grille in the B7 series A4, people loved them even more. Sales boomed everywhere. Especially conservative luxury market Malaysia too. People love the 'bling' in expensive cars. Look at Toyota, instead of selling a Camry that has a very chrome free grille like in America and Australia, we Malaysians get a Camry that actually apes the Toyota Aurion 3.5 sold in Australia. We get the most ostentatious looking Camry because we want to be seen as a success in one. Uncle car or not. 

And Volvo isn't giving this to us. Don't believe me? Take a look at the photos right above and below - We have the top of the line RM300,000 Volvo S80 going against EM250,000 compact executives like the Audi A4, BMW 3series and the Mercedes Benz C-class. The Audi, BMW and Mercedes all have distinctive grilles. The BMW kidney grille is getting larger with each generation, the Audi rings are also large within a very large grille and the Mercedes shows off its huge three-pointed star within a very wide grille. Now add their even more distinctive daytime driving lights in all three cars stated and compare all of these to the Volvo and you will notice that the Volvo is too understated. And this is the top of the line 5 series sized S80. Their cars aren't bling enough. And add the similar pricing for the S60, Volvo isn't going anywhere. 

Maybe a return to a larger grille like the older cars like the Volvo 164 (below) or the 264 should be the way. Even the classic and very good looking P1800 coupe has a large distinctive grille (right at the bottom). If you say that Volvo is catering to the low profile crowd then no one would be buying Volvos at a volume that Volvo needs to sustain. When I say people actually want some extra 'bling' to show they've made it, I think I am right. If I were truly wrong, there would be more Volvos out there.

Volvo also needs to revamp its image. And a marketing team that actually builds on its heritage instead of trying to be hip and cool like everybody else is doing these days. Volvo has got to do a whole lot and one damn article isn't enough space for me to explain more.