Volvo Spells Out Revival Plan for U.S. Market

Volvo Car Corp. tells reporters in Detroit it aims to reverse its sliding sales in the U.S. with fresh "Scandinavian" designs, new powertrains, an emphasis on simple luxury and a return to its safety-focused image.

The company also is shopping for a new global ad agency to replace the incumbent Arnold Worldwide.

But Volvo's new-product push won't begin in earnest until late next year when the first result of the company's previously announced five-year, $11 billion overhaul a redesigned XC90 large crossover arrives.

Volvo's U.S. sales which peaked at 139,000 units in 2004 were less than half that volume in 2012. Demand this year is down nearly 7%. The brand has languished from before Ford Motor Co. sold it to Zhejiang Geely Holding Group Co. three years ago.

Volvo said previously it hopes to boost worldwide sales from about 450,000 units this year to 800,000 vehicles by 2020. It expects to generate 25% of those sales in China, where it opened its first assembly plant in June. A second facility is due late next year.