Volvo Says Redesigned Crossover Critical to Brand

Volvo Car Corp. tells Bloomberg News its upcoming XC90 crossover vehicle "has to work" to enable the brand to relaunch itself and better compete with such rivals as Audi, BMW and Mercedes-Benz.

The model, which Volvo touts as its most luxurious and technologically advanced ever, will be introduced publicly early next week.

The redesigned XC90 will be the company's first model build with no components from former owner Ford Motor Co. It also will be the first Volvo to ride on the company's new "scalable product architecture" platform.

The PSA chassis, which eventually will carry most of Volvo's next-generation models, can accommodate hybrid and all-electric powertrains. Volvo's Chinese owner Zhejiang Geely Holding Group Ltd. is investing more than €8 billion on the product overhaul.

Volvo's sales peaked at 458,000 units seven years ago. Last year it sold 427,800 vehicles and expects to reach 470,000 units in 2014. The company aims to reach 800,000 sales by 2020, in part by boosting volume in China.