December 19, 2002
By TOMMY GRANDELL
ASSOCIATED PRESS
STOCKHOLM, Sweden -- Volvo may speed up production of its new sport utility vehicle, the XC90, after hundreds were lost in a shipping accident, the company said Wednesday.
Volvo said the number of buyers interested in the vehicle, combined with the loss of 350 in the sinking of a Norwegian cargo ship last week in the English Channel, has caused concern that demand may outstrip supply.
There were 2,900 cars, including Volvos, Saabs and BMWs, that went down with the ship. Most of the XC90s were headed for the United States.
Delivery times for the XC90 are already long. Buyers in Sweden have to wait as long as a year to acquire the four-wheel drive SUV. After the accident, there were fears the wait times could be longer.
"We have a general increase in orders for the XC90 model which means that we are now looking at the possibility to increase production," Volvo spokesman Christer Gustafsson said.
"Initially we aimed at 50,000 cars of the type per year and are now aiming for between 55,000 and 60,000," he said.
Since its introduction this year, Volvo has sold about 9,000 XC90s, more than half of them in the United States. The cars retail for around $37,000.
Also Wednesday, the company's powertrain unit said it will invest 375 million kronor ($42.2 million) in its plants in Skoevde, southern Sweden.
Volvo Powertrain, which makes engines, gearboxes, axles and other components for heavy commercial vehicles, said the investments will cover a new line for casting and modifications of the machining systems for its next-generation heavy diesel engine.
Volvo Powertrain develops and manufactures its products for vehicles bearing the Volvo, Renault and Mack brands. The unit employs nearly 8,000 workers in Sweden, France, the United States and
By TOMMY GRANDELL
ASSOCIATED PRESS
STOCKHOLM, Sweden -- Volvo may speed up production of its new sport utility vehicle, the XC90, after hundreds were lost in a shipping accident, the company said Wednesday.
Volvo said the number of buyers interested in the vehicle, combined with the loss of 350 in the sinking of a Norwegian cargo ship last week in the English Channel, has caused concern that demand may outstrip supply.
There were 2,900 cars, including Volvos, Saabs and BMWs, that went down with the ship. Most of the XC90s were headed for the United States.
Delivery times for the XC90 are already long. Buyers in Sweden have to wait as long as a year to acquire the four-wheel drive SUV. After the accident, there were fears the wait times could be longer.
"We have a general increase in orders for the XC90 model which means that we are now looking at the possibility to increase production," Volvo spokesman Christer Gustafsson said.
"Initially we aimed at 50,000 cars of the type per year and are now aiming for between 55,000 and 60,000," he said.
Since its introduction this year, Volvo has sold about 9,000 XC90s, more than half of them in the United States. The cars retail for around $37,000.
Also Wednesday, the company's powertrain unit said it will invest 375 million kronor ($42.2 million) in its plants in Skoevde, southern Sweden.
Volvo Powertrain, which makes engines, gearboxes, axles and other components for heavy commercial vehicles, said the investments will cover a new line for casting and modifications of the machining systems for its next-generation heavy diesel engine.
Volvo Powertrain develops and manufactures its products for vehicles bearing the Volvo, Renault and Mack brands. The unit employs nearly 8,000 workers in Sweden, France, the United States and