Just a week after it debuted its first China-built vehicle to be sold in the U.S., the S60, Volvo put Lex Kerssemakers in charge of the automaker’s North and South American operations with a specific task: get U.S. sales back up.
Kerssemakers is now as Senior Vice President Americas and his appointment is, according to the automaker, a symbol of “the company’s commitment to the core American market.” The newly appointed chief was previously Senior Vice President of Product Strategy and Vehicle Line Management. He’s been with the automaker for 16 years.
In his new role, Kerssemakers reports to Håkan Samuelsson, Volvo Cars’ president and chief executive. He will also assume the role of President and chief executive of Volvo Cars of North America.
(Volvo to introduce first Chinese-made car to U.S. market. For more, Click Here.)
“I am looking forward to this challenge,” Kerssemakers said in a statement. “The U.S. is a key market for the development of the group and today we get back onto the front foot. Volvo is not only in the U.S. to stay, it is in the U.S. to prosper.”
(Click Here for details about the new S60 Cross Country.)
Volvo, which was purchased by Chinese automaker Geely in 2010, is looking to bolster its U.S. sales with its “U.S. Revival Plan.” The five-step plan includes:
- The complete renewal of the product range beginning with the all-new XC90 SUV, the V60 Cross Country wagon and the S60 Cross Country sedan
- A full scale strengthening of the brand with the marketing budget set to increase significantly
- A focus on developing the dealer network to ensure the infrastructure is in place to support brand development and new products
- A focus on managing residual values to ensure that the company’s premium position is reflected in the long term value of its products
- A drive to improve service operations and deliver real profit opportunities to the dealer network as well as an uncompromising approach to service quality
The plan is to get company’s U.S. sales back its heyday when it sold more than 100,000 units annually. In 2014, Volvo sold about 58,000 vehicles. Volvo’s been showing some of its vehicles for the future, but is really relying on the aforementioned XC90, V60 and S60 to begin the charge.
(To see more about Cadillac’s plan for “boutique” dealerships, Click Here.)
At the recent Detroit Auto Show, the automaker launched a long-wheelbase version of its S60 sedan, which will be the first car scheduled to go on sale in the U.S. market produced in China.
The S60 Inscription adds another 3.4 inches of rear legroom to the current S60 model, taking it from cramped to what Volvo claims is best-in-class space. Set to reach U.S. showrooms this coming summer, the long-wheelbase model has been in production for more than a year at the Volvo plant in Chengdu, not far from the headquarters of its Chinese parent, Geely. It’s the first plant Volvo has operated outside Europe.
The marketing budget will increase significantly…what marketing budget? They could raise it 500% and MAYBE we’d notice an ad or two