RTCRM

In seeing this news, I can say it’s interesting, but I can’t say it’s suprising. As Ford fights to keep its head above water, "shedding the fat" is a requirement if it is to get the federal bailout it needs. For Ford, Volvo is the fat. I knew Volvo wasn’t doing well, but I was a little shocked to hear that when comparing October 2007 and October 2008, there was a 52% decrease in new automobile sales. How can Volvo, a classic brand with a large following, be doing so poorly? Is this entirely due to the recession? The answer is no. What we have here is a classic positioning problem: we simply don’t know what Volvo stands for anymore. Amid all the messaging of performance, style, durability, and safety, Volvo has begun to disappear into the sea of automotive sameness.
Volvo was founded on the principle of safety. After being the sole guiding principle of the company for many years, Volvo decided that they needed more. Safety could be complemented by other attributes to win new audiences. The problem was that these attributes overshadowed safety. In trying to be all things to all people, Volvo became less appealing to everyone. Add a recession, and you’ve got an even bigger problem.
All is not lost, though. There are many Volvo enthusiasts out there (me being one of them) who know the potential of this brand. Its new C30 is a prime example of this potential. If Ford does sell Volvo, perhaps the buyer will understand the need to shift back to safety as the company’s north star. Perhaps there is a place for design and style (which are very unique to a Volvo), but only in subordination to the thing that makes a Volvo a Volvo: Safety.