Volvo Car Corporation achieves a profit for the third quarte

[nomashedswede]

Originally Posted by Volvophile

Ford weren't much better for Volvo than GM were for SAAB. During their ownership they cancelled many projects Volvo had going, such as the converting of their modular engine range to gasoline direct injection and many other things. What Ford did was raid Volvo of all its safety knowhow and use it for their own range of cars, particularly for the US. It also can't be argued that Volvo quality is nowhere what it used to be since the Ford based models started rolling out. Everything now feels built down to a price and ergonomic design seems to have gone out the window.

Ford helped Land Rover out a good bit because the company was basically a basketcase when they were acquired. In my opinion they did very little for Volvo except make them loss making and move the brand downmarket.

I chose my words carefully - "as a business".
Volvo were going nowhere "as a business", until Ford stepped in. They now have good, modern products that have a mass market appeal, and are selling. Volvo could not have made anywhere near the investment to bring one new model range, let alone the 4 that have come about recently. Add the background of ever increasing regulation on emissions, etc., and an independent Volvo would have become a defunct manufacturer. Whoever had brought Volvo at the time, would have done something similar to Ford, or raped them for their R & D, and got rid ( as per BMW and Land Rover), without putting in any significant investment.
I, like I suspect most members of this forum, lament the "mass market commercialisation" of the brand. It flies in the face of what we all value so much about our cars, but, unfortunately, these are the hard facts.
Think about this business model;
You decide you want to start a car business. Your aims are to produce a well engineered product, build it very well, so it is both reliable, requiring minimum maintainence, design life of 20 years, and capable of huge mileages. Your customers are so happy they keep their cars for 10 years instead of 3 ! Your dealers are getting fat because your loyal customers maintain their cars, and the dealers profits are in the workshop not the showroom. Your cars are internationally acknowledged for their quality. Everybody loves you, and the economics are brilliant for everybody - EXCEPT you the manufacturer. You maintain a parts back catalogue for 20 years to support your customers cars. This isn`t great though, because your parts are good quality too, and last longer than the industry norm. You nearly always get repeat customers - but once every 10 years, won`t sustain your business.