Volvo launches second-generation XC90

Volvo Cars has finally revealed its second-generation XC90, a vehicle which is said to mark the future direction of the Swedish brand as part of its USD11-billion investment programme. After several months of drip-feeding details, the company has taken the wraps off the design of its new large seven seat sport utility vehicle (SUV), which also features a host of new technologies.

The new vehicle, which is underpinned by Volvo's new flexible Scalable Product Architecture (SPA), features a new design direction for the brand that has already been seen in several concepts leading up to its launch including its Concept Estate (see Switzerland: 27 February 2014: Geneva Motor Show 2014: Volvo reveals further details of new concept) and Concept XC Coupé (see United States: 16 January 2014: NAIAS 2014: Volvo XC Coupé introduces dynamic brand style, wins design award). While there are elements of the previous generation XC90 about its styling, it includes a prominent grille featuring Volvo's iconic "arrow" logo and diagonal slash branding. It also includes the new "Thor's Hammer" driving light signature which the brand is hoping will give its vehicles a more distinctive look. Other design features will also find their way on to the brand's other forthcoming vehicles, including its larger bonnet shape, beltline and sharpened shoulders that connect with the new rear lighting details. It is said that the new model will be available with wheel sizes up to 22 inches with the Rugged Luxury package with matte black exterior trim, stainless steel skid plates, running boards with illumination and integrated exhaust pipes, while 21-inch wheels will be offered with the Urban Luxury package alongside a colour co-ordinated body kit with polished stainless steel details, such as front deco frames, front and rear skid plates and side scuff plates.

The XC90 will also be one of the first to be solely available with the brand's new downsized 2.0-litre four-cylinder Drive-E gasoline (petrol) and diesel engines. It is set to be available in a range of guises, including supercharged and turbocharged derivatives combined with plug-in hybrid technology that offers up to 400 bhp, while achieving CO2 emissions of around 60 g/km on the New European Driving Cycle (NEDC; see Sweden: 8 July 2014: Volvo reveals hybrid technology for second-generation XC90).

Unsurprisingly for a Volvo, safety is high on the agenda as it moves forward towards its goal that no one will be killed or seriously injured in a new Volvo car by 2020. As well as leveraging the strength built in to the SPA platform to protect occupants in the event of collision, it also adds further functionality to the brands safety technology suite (see Sweden: 22 July 2014: Volvo unveils new safety technology in preparation for new XC90 launch). Lex Kerssemakers, Volvo's senior vice-president for Product Strategy and Vehicle Line Management was quoted as saying that the technology puts the automaker on "the first step towards self-driving cars. A new function that automatically follows the vehicle ahead in stop-and-go traffic will provide a radically simplified, semi-autonomous driving experience."

The XC90 is also said to feature the brand's most luxurious interior it has ever put together. It has high technology features such as a tablet-like touchscreen controller for vehicle systems in the centre of the dashboard including benefiting from Android Auto (see United States: 26 June 2014: Google introduces Android Auto, Hyundai, Volvo, Audi announce participation), Apple CarPlay (see United States: 3 March 2014: Apple launches CarPlay interface for iPhone) and internet-based services. It also features a Bowers & Wilkens stereo system, with the top version having 19 speakers and the latest sound processing software. Despite this, it has been able to offer a relatively uncluttered interior, leveraging Volvo's Scandinavian design heritage. This includes in the area of interior materials which features soft leather, wood, crystal glass (for the gear lever) and diamond cut controls (for the start/stop button and volume control). Developments in seat design also make it possible for occupants of up to 170 cm to sit in the third row (see Sweden: 27 May 2014: Volvo reveals interior for new XC90).

Outlook and implications

There is no denying that this is an exceptionally important vehicle for Volvo. While it has launched new and updated vehicles following its takeover by Zhejiang Geely Holding Group, the XC90 is the first model that has made a wholesale breakaway from Ford technology. It also underlines the future expectations of the brand by management and its owner. While it has been reported that this has not been the smoothest of roads, both sides know that they have to take a risk by launching this vehicle with still yet unproven powertrains and architectures in order to widen the impact of the brand. Indeed, Dennis Nobelius, the head of the XC90 project at the automaker, told The Financial Times (FT) in an interview that it is an "all-in car – the one where we put everything in."

The question now is whether this will be enough to break the stranglehold of other automakers in the luxury SUV sector, including the German big three premium brands Audi, BMW and Mercedes, which already occupy significant turf in the premium E SUV segment, and will add to it with further derivatives in future. However, there is also a great deal of competition from other brands such as Land Rover, which has recently introduced the second-generation Range Rover Sport to be sold alongside its ageing Discovery, and the Porsche Cayenne and Volkswagen (VW) Touareg. In North America, brands such as Cadillac, Infiniti and Lexus will also put pressure on it. IHS Automotive currently anticipates that global sales of this second-generation XC90 will stand at around 65,000 units at its peak, with the majority of these vehicles being sold in China. However, we currently do not expect the vehicle to repeat the popularity of the first generation in markets such as North America and Europe due to how crowded this playing field now is. It remains to be seen whether consumers respond well to the brand's new direction; if it is successful, it could bode well for its further new launches in future.