Volvo May Drop S40 Sedan

The automotive market is a tricky one. Trends are constantly changing and models are dropped for various reasons, like slow sales or even a new CEO’s whim. One recent rumor we heard was that Volvo’s introductory sedan, the S40, was heading to the chopping block. That bit of news deserved some investigation.

The S40 sedan will indeed remain in the Volvo lineup for at least three years, but may be dropped from the lineup after that time period. Current plans call for the V50 to remain in the lineup longer than the S40, should the S40 be dropped. Volvo isn't sure it needs a three-sedan lineup — small S40, midsize S60, large S80 — especially because the S60 and S80 are similar in size. One of the scenarios under consideration is to drop the S40 and have a scaled-down version of the current S60 to cover the market where the S40 and S60 now compete, leaving the upper end to the S80. "This is one of many scenarios," a source said. "Don't take it to the bank yet."

"It makes sense to consolidate because everyone else in the auto industry is consolidating," said Joe Phillippi of AutoTrends, an automotive consulting firm.

"Volvo doesn't need three sedans,” Phillippi said. “The new C30 can serve the purpose of attracting younger, less-affluent buyers than the S40 now does. It costs a lot of money to refresh a car like the S40 every five years, though at Volvo it's more like six years, and money is very important to Volvo and any eventual partner." The Swedish automaker is owned by Ford but may be sold to help fund the company’s North American turnaround.

"Any new partner may not want to invest the money it would take to support three sedans, which is a very expensive proposition," Phillippi said.

Related
2008 Volvo S40 Unveiled (KickingTires)
More Volvo News (KickingTires)

Comments

strange they would drop it, but if there is quality issues - then why not.

strange they would drop it, but if there is quality issues - then why not.

I keep hearing that the S40 does not sell well and yet I see them EVERYWHERE. Much more often than any other Volvo model, with the S60 a close second. It makes sense though with the hot new C30, the new S60 could easily help cover the void if it were to be killed.

they should keep the S40. its a practical and safe car that (well in my area) sells pretty well. The interior is pretty nice, especially for the price.

if there is such a size issue, then they should redesign the S80 again to make it a real flagship sedan, with a sizable rear seat instead of the relatiley small one (for a "flagship") that they have. the S60 needs to be redesigned ASAP though. its design is again and its engine isnt as competitive as it once was. if they can keep it as the sporty sedan of the lineup, there should be plenty of differentiation between it and the S80, even if they dont make the S80 larger. the redesigned S60 should have aggressive and sporty styling, opposed to the S80's more content and sophisticated styling.

Why would they think that the C30 can do the job of the S40 instead of chopping the S80, then upgrade the S60?

If I want a hatchback, Volvo is and will never be on the list.

Aren’t hatchbacks generally less safe as oppose to a sedan? If it ever gets rear ended, guess what’s absorbing the impact and protecting the front occupants?... the passengers in the rear. This issue is different with SUVs because they’re built higher and stronger due to their body on frame structure. I thought a company that prides itself on safety would’ve thought about this before coming out with the C30. Then again, it’s owned by Ford.

Ken L. I don't know where you get the idea that hatchbacks are less safe than regular cars. They're probably safer than the 3rd row of an SUV.

And I can admit I only drive by myself 90% of the time, I'd wager most people who own hatchbacks usually don't stuff people back there every day.

I don't see why Volvo would phase out the S40. But the C30-V50 strategy seems like a pretty sound argument. Bring the S60 down market and the XC70 and C-70 will round out the middle. I do think the S80 isn't special ENOUGH. I thought the first S80 that started Volvo's current design language was stunning (compared to 240 varients for 30 years) but now it's become standard and you have to squint to tell an S80 from a S60 now.

Not good.

I still think the XC90's a waste but I'm not a ute fan. Seems to be selling well.

Sadly I think the C70 is probably a pretty weak product (I love it, can't afford it) so that seems more likely to get cut.

I'm a bit surprised the C70 doesn't sell better myself, I'm guessing its price hurts but we've praised it here many times.
It does sell better than the V50 though.

The S40 does outsell the S60 but you'd expect that. and the difference could be made up by an entry level s60.
The new S80 is doing well and it's one of my favorite cars for its segment. That new turbo is totally underrated and any of the three trims is about $10K less than the equivalent BMW or Merc.

And yes the XC90 is the company's best selling vehicle, about twice the sales of anything else.

Its not the quality issues, people are slowly moving towards CUV's and Sedan's may slowly fall by the wayside.

Infact, soon some shorter CUV's may come which may give a carlike mileage but have more room and people will surely jump into this.