Volvo eyes bigger share of local luxury sedan market

The Scandinavian Motors Corp. (SMC) hopes to increase its lead in the local high-end luxury sedan market with the soft-launched of the new Volvo S80 recently. SMC is the exclusive distributor of Volvo in the Philippines.

SMC is the current leader in the 2.2-liter luxury sedan category and the leading distributor of high-end Europeans automobiles in the country. Already, it has sold 68 units as of end April this year.

"We plan to sell between 250 to 300 Volvo units this year, and in the process improve our leadership in the luxury car segment (2.2-liter engine displacement," SMC chairman Peter D. Garrucho Jr. told The STAR during the formal ceremonies marking the renewal of its distributorship contract with Volvo Car Corp.

According to SMC officials, the new distributorship contract marks an increase in the confidence of Volvo Car Corp. as it covers an indefinite period of time. The previous contract was limited to a five-year period.

SMC sold a total of 1,348 units since 1994 with last year's sales hitting 107 units despite the weak market. Officials pointed out that in 1995, they posted the highest percentage of sales with a market share of 65.74 percent. SMC also said they consistently posted a growth rate of 30 percent.

Meanwhile, the Volvo S80 will be formally introduced to the public on May 22. The Volvo S80 is a front wheel drive five-cylinder or six-cylinder luxury sedan with the most complete features of safety, comfort and performance, according to a SMC press statement. It joins the sedan group of the S40 and the S70 in the Philippine automobile market while the SMC continues to sell its wagon class bannered by the V40 and V70 models. Since 1994, it has launched nine Volvo sedan and station wagon models.

Alberto B. Arcilla, SMC chief operating officer, said the S80 competes directly with the BMW 5-series the Audi A6 and the Mercedes Benz E class in terms of price levels.

"But it is in a class of its own in terms of engine displacement, amenities, safety and comfort features in the luxury sedan category which focuses on a select and completely focused clientele," Arcilla stressed.

The S80 will come in a 2.0-liter 20-valve variant with light pressure turbo engine, and a 2.8-liter 24-valve twin turbo T6 engine. Prices range from P2.55-million for the 2.0-liter variant, and P3.7-million for the 2.8-variant. -- Ted Torres