New and innovative models put Volvo on the right road<\/p>\n
By John Aglionby<\/p>\n
SWEDISH people do not have a reputation for stupidity, but one
\nmight be forgiven for thinking they are trying for one on first
\nhearing what Volvo is doing in Indonesia at the moment.<\/p>\n
At a time when the country's economy is struggling to stay
\nafloat, and when most people are tightening their belts in the
\nface of much-reduced disposable incomes, the Swedish car
\nmanufacturer is attempting to revolutionize the nation's
\nautomotive psyche.<\/p>\n
Or at least the part which says that station wagons and luxury
\ncars are mutually exclusive concepts.<\/p>\n
No upper-market station wagon has ever been a success in this
\ncountry but amid a flurry of high-profile advertising and media
\nhype, Volvo launched its V70, along with its sedan sibling the
\nS70, last weekend.<\/p>\n
\"We didn't plan for the economy,\" said Volvo's vice president
\nfor Indonesia, Jack Dirckx.<\/p>\n
\"We planned the launch a year ago. Okay, so the circumstances
\nare not ideal, but it doesn't mean we should stop the project. We
\nshould not be planning short-term anyway but medium to long-
\nterm.\"<\/p>\n
If that doesn't appear crazy enough in the current
\ncircumstances, Volvo is attempting to revamp its own image in one
\nfell swoop at the same time.<\/p>\n
Most Indonesians see it as a maker of safe, reliable but very
\nconservative cars, while most expatriates see its station wagon
\nas a family workhorse that you only need if you have at least 2.5
\nkids and a couple of dogs.<\/p>\n
Neither is the natural partner of young, rich executives,
\nVolvo's new target market.<\/p>\n
Sales figures for the last couple of months, however, indicate
\nthat Volvo is doing something right at the moment.<\/p>\n
While Mercedes and BMW have seen sales drop by up to 50
\npercent, Volvo's share of its market has increased from less than
\n7 percent to more than 14 percent.<\/p>\n
Other statistics tell a slightly different story. While Volvo
\nis the top seller of company cars in its market segment,
\nMercedes-Benz and BMW sell many more vehicles when individuals
\nare paying themselves.<\/p>\n
But with a new slogan, Passion for life, Volvo reckons it can
\nchange this, and do so by selling station wagons.<\/p>\n
Dirckx believes one should not be looking backward but
\nforward.<\/p>\n
\"We certainly see a different public that have different
\nvalues and a different lifestyle to a few years ago. That is why
\nwe have launched the V70,\" he said.<\/p>\n
Hence, the massive publicity drive. It is as if Volvo is
\ntrying to convince people that they can break out of the confines
\nof the national psyche, and survive.<\/p>\n
And it is helped by having a much-changed product from what
\nmost Indonesians are used to, one that should convince people
\nthat perhaps Swedes are not so crazy after all.<\/p>\n
More than 1,800 changes have been made to Volvo's previous
\nstation wagon, the 850, and the vast majority of them are
\ndefinitely improvements.<\/p>\n
Many are obvious on first glance. The V70 looks much sleeker,
\nmuch less of a rectangular box, than the 850.<\/p>\n
There are more curves than straight edges, the windshield is a
\ncase in point, and the hood and front grille are sloping, which
\nadd to the elegant appearance.<\/p>\n
In short, it does not look so much like a Volvo. Whether these
\nare enough to attract the country's yuppies remains to be seen.<\/p>\n
The S70 looks almost the same from the front, but its more
\ntraditional right-angled trunk gives it a more conservative feel
\nand it is doubtful whether this model will attract converts away
\nfrom other makes.<\/p>\n
Volvo is also stressing its commitment to protecting the
\nenvironment. By choosing to buy a Volvo, the company argues, one
\nis backing the manufacturer that is doing the most to protect the
\nenvironment.<\/p>\n
This is a moot point, especially in Indonesia, where little
\nprogress is visible in the campaign for more environmentally
\nfriendly vehicles.<\/p>\n
Dirckx accepts this but says any action is better than no
\naction. \"If the government doesn't take the initiative you cannot
\nexpect people to do so. And at the moment the environment is not
\nthe government's first priority. But with the forest fires, there
\nwill be more focus on the environment, which will trigger more
\nconsciousness about greener cars.\"<\/p>\n
Five versions of the S70 and V70 are available in Indonesia,
\nalthough as their images are so completely different it is more a
\ncase of two V70s and three S70s.<\/p>\n
For anyone doing much driving in a big city, it would make
\nmore sense to go for an automatic transmission, although in the
\nV70 this is only available in the more expensive T5 turbo
\nversion.<\/p>\n
Expense is a factor that will play a large part in making up
\nmany people's minds whether to buy one. Prices range from Rp 155
\nmillion (US$45,500) for the S70 SE to Rp 204 million for the V70
\nT5, or five times the price of a new Kijang.<\/p>\n
Having said that, Volvo is not trying to sell as many V70 and
\nS70s as Astra is trying to sell Kijangs. Its target for the end
\nof this year is 300 cars, or 35 percent of total Volvo sales, and
\n720 out of 1,200 total sales in 1998.<\/p>\n
Only time will tell if these goals are reached. Volvo and its
\nIndonesian partner PT Indomobil, deserve success for leading the
\nway into a new market -- Mercedes and BMW are following much more
\nmeekly -- and they have a good enough product to achieve it.<\/p>\n
It is now up to the market to decide if it wants to change its
\nlong-held views.<\/p>",
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