Volvo Claims It No Longer Requires Wagons, States SUVs Are the Future | Carscoops

      CEO Jim Rowan indicates that SUVs present better volume opportunities, which minimizes the necessity for estate models.

      Volvo's CEO envisions a future where an estate car is not part of their lineup. Instead, the brand will concentrate on various versions of SUVs and sedans. This year, they are set to reveal five new models, none of which appear to be wagons.

      It seems that the Volvo car may soon become a rarity, joining the ranks of extinct species. To be accurate, the V90 has already appeared to be on borrowed time. What's changed is that CEO Jim Rowan believes Volvo's future does not require a wagon, marking a significant departure from the brand's legacy known for its estate cars.

      In a recent conversation with AutoExpress, Rowan discussed the company's strategic realignment, affirming that the wagon is no longer favored by the brand. He remarked, “Bringing new models to market is costly. It’s much more economical to drive volume through the same platform and form factor.”

      Volvo's strategy is to capitalize on the increasing appeal of SUVs. To achieve this, the company will provide more targeted variations, such as the Black Editions and Cross Country trims of its existing models.

      Rowan emphasized this transition, openly stating that the market has shifted in favor of SUVs. While this is not new information for those following the automotive market, it's still surprising for a brand celebrated for its wagons to consider letting them fade away.

      Notably, this announcement follows comments from Robert Deane, the commercial director of Volvo UK, who stated that discontinuing the V60 and V90 in 2023 was an error. He said, “When customers are informed that [estates] aren’t available, they go elsewhere.” He’s correct, as brands like BMW and Audi currently provide appealing wagon options. This may be a reason Volvo is hesitant to compete in the wagon segment at present.

      Rowan further explained that Volvo is intentionally focusing its efforts. “We’re making deliberate choices about where we want to compete,” he stated. “Our differentiation lies in SUVs; with their elevated ride height and safety, we believe we can defend that niche against the competition. It's much easier than being sidetracked by too many models.”

      From a business perspective, this approach is logical. The brand is already planning five new models for 2025, including the recently revealed ES90 and the new all-electric EX60. If these models succeed, it’s possible that this won’t be the last we see of a Volvo estate car, but don’t expect a new one any time soon.