Volvo, which has previously said it plans to introduce 13 new vehicles by 2030, is now working on a model in a segment it has not entered before. The project is a large F-segment SUV aimed at the premium full-size market.
According to the company’s chief designer, the new model is being positioned to compete with Range Rover. Volvo’s chief executive had earlier hinted at the same direction, suggesting the project fits the Swedish carmaker’s broader development strategy.
The company believes vehicles in this class can deliver strong margins even with relatively low sales volumes. That makes the segment attractive from a profitability standpoint as Volvo expands its lineup.
The new SUV is expected to target North America first, where competition is particularly intense. In addition to Range Rover, the future Volvo model would face BMW X7, Mercedes-Benz GLS, the recently unveiled Audi Q9, Cadillac Escalade and Lincoln Navigator.
Volvo says it wants to offer buyers a more compelling vehicle powered by a new hybrid drivetrain. During development, the company plans to focus closely on tactile quality and the kind of sensory experience associated with premium vehicles.
The chief designer also said Volvo intends to draw on Chinese experience in developing the new SUV. The company plans to apply that know-how to other vehicles that will be sold globally as well.
