The Final Word

By Dan Strong

15th February 2008

	It's not clear whether Volvo is here to stay because Ford wants it to, or because it can't find a buyer with $ 6 billion

If you believe what Ford’s new boss Alan Mulally says, the For Sale signs really have been taken down at Volvo. Hot on the heels of Aston Martin, and the imminent change of ownership at Land Rover and Jaguar, the Swedish car firm seemed a dead cert for a Dutch auction. Not any more. Ford has publicly committed to a future that includes the Scandinavian marque – even if it won’t really reveal why. It’s not entirely obvious whether Volvo is here to stay because Ford actually wants it to, or because it can’t find a buyer with the billion the blue oval is widely regarded to believe its asset is worth.

Even so, Volvo is reckoned to be a profitable company, which is no mean feat in today’s market. What’s more, with such a narrow product line-up that only includes a couple of estates, matching saloons, a small hatch and an SUV, the motor manufacturer has plenty of room for growth. So the big question is, what kind of cars would you like to see Volvo build? It’s a question I asked when I had the opportunity to catch up with some of the firm’s senior staff at a recent event the firm held in the town of Riksgransen, 200 miles north of the Arctic Circle.

Promising to mention no names, I got a series of surprisingly diverse answers. Given that the company is set to pull the wraps from its new off-roader, the XC60, I hadn’t really counted on anyone talking about sports cars, which is exactly what happened. Thing is, the firm really has been busy with the basics, and behind the scenes has done a lot of work researching aluminium honeycomb chassis technology.

Lightweight and extremely strong, it’s already been used by Jaguar, but would be perfect for a fast two-seat sports car built by Volvo, or anyone else for that matter.Despite the promise, what Volvo actually means when it talks about the idea of a sports car isn’t exactly clear. But when the conversation turned to the idea of resurrecting the legendary P1800 coupé, eyes were averted and the subject was quickly changed... which leads me to believe that it is at least one of the ideas on the table.

Interestingly, Ford’s S-MAX was also mentioned, with one of Volvo’s representatives remarking that this “was a really excellent car”. Add in Volvo’s Scandinavian focus on the importance of family, plus its reputation for safety, and it is a surprise the firm has no such MPV.

Fuel cells and hybrids were not dismissed,but from our location, where the outside temperature was hovering around -15ºC, Volvo engineering types admitted that it’s clear the technology must be developed before it is any use. There were vague noises about a five-door version of the new C30, plus changes to the way in which an S60 is built. Apparently, the current car could be larger next time around.

But with Aston, Jaguar and Land Rover gone from the Ford empire, will Volvo be able to deliver on its grand designs for the future? One of the things that keeps cropping up in conversation about the blue oval is that its biggest failing with Jaguar was an inability to leave the Coventry firm’s staff alone to develop a product range it truly believed in.

Now that Volvo is the company’s sole European luxury brand, will Ford be able to exercise the self restraint it needs to allow the firm to really grow? Or is the pressure to turn Volvo into a new, US-friendly luxury car brand inspired by the likes of American manufacturer Lincoln already underway?

That’s a question only Alan Mulally can answer, although you have to wonder if his new-found enthusiasm for Volvo involves doing just that. With the kind of independence and vision shown by the people I met, I really hope that is not the case.