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FEATURES
January 23, 2015
The Essential Value of Volvo
Volvo
The Essential Value of Volvo
With strong sales, theV40model. Coinciding with the Japanese launch of the third iteration, theV40 AWD T5 Cross Countrymodel, Håkan Abrahamsson, Director of the Passenger Car Division at the Swedish headquarters, visited Japan. We spoke with him at the test drive event in Karuizawa about Volvo's growth strategy, which approaches the Japanese market with an aggressive stance, leveraging advanced safety technology, sporty handling, and competitive pricing.
Text by OGAWA FumioPortrait by ARAKAWA MasayukiWith cooperation from: Foresta Karuizawa
Rich in Expression, But Never Loud
What is Volvo's essential value, from the perspective of its creators?
Håkan Abrahamsson(Titles omitted) Our research indicates that many people consider Volvo's value to be its high level of safety. We have no intention of abandoning that. For a time, we experimented with a German car-inspired approach, but ultimately, we realized that our users seek the same value (safety) they've always expected from us. Today, Volvo cars combine that with emotional value.
Our company policy is to place people at the center, which ultimately means prioritizing safety. The pedestrian airbag adopted in the V40 is another example of such a characteristic Volvo feature.
—Volvo frequently emphasizes its identity as a Scandinavian (Nordic) car. How should we interpret that?
I believe the strength of Scandinavia lies in mutual care. Social democracy is deeply ingrained; while taxes are high, education and healthcare are free, and unemployment benefits are robust. On the other hand, the harsh climate and limited agricultural output necessitate a simple lifestyle, which is reflected in our values regarding material possessions.
For example, in design, we favor simplicity and prioritize functional forms. To describe Swedish products in words, they are understated, clean, and pure. Of course, quality is paramount, which leads me to say: 'Rich in expression, but never loud – that is Volvo.'
Volvo
The Essential Value of Volvo (2)
Ford seriously considered what Volvo's core values were.
Volvo Cars has had several owners. How has that impacted your car manufacturing?
Volvo was once part of a group that also handled buses, trucks,Marine, and even food products. Passenger cars were merely one division, not the core focus. However, when Ford established PAG (Premier Automotive Group) in 1999, Volvo's passenger car division was acquired and integrated into it.
Ford, being a passenger car brand, possessed extensive expertise and provided many positive influences. While cost calculations were certainly rigorous, we learned a great deal about the car manufacturing process. Furthermore, Ford genuinely contemplated Volvo's core values.

Second-generation Volvo V70: A model from around the time it came under Ford's ownership after its sale
—Was the V40 also planned during the Ford era?
The initial phase was under Ford. Later, the ownership of Volvo Cars transitioned to Zhejiang Geely Holding Group, a Chinese automotive group known for its brand Geely.
Ford's experience with Jaguar, another brand within the Premier Automotive Group, provided valuable lessons. Their bitter experience with Jaguar proved advantageous for Volvo, which joined later.
Ford had inadvertently delved too deeply into Jaguar's core identity, resulting in a period under PAG that became a lost era for the brand. Applying that lesson, Ford treated Volvo with care.
—And then, Geely became the owner.
The first CEO was Stefan Jacoby, who had previously worked at Volkswagen. Unlike the Ford era, CEO Jacoby prioritized quality and decided to actively incorporate luxury elements into Volvo cars. Although it was late in the development cycle, I believe it turned out to be the right decision.
Volvo
The Essential Value of Volvo (3)
A Powerful Lineup Once Again
How do you hope the V40 will be received?
We emphasize aspects like the surface (the exquisite craftsmanship of the body panels), color, craftsmanship, and high quality. It's simple, yet rich in expression and compelling. We are conscious of this. We want to incorporate elements that make people turn their heads for a second look when they pass it on the street. That was our development goal.
So, design is a crucial element for the V40?
After Volvo Cars was acquired by Geely and he stepped down, Stephen Odell, who later became Chairman and CEO of Ford Europe, said the following during his tenure as CEO of Volvo Cars:
'The V40 shouldn't just be good design; it must be fantastic design.'
The V40 Cross Country T5 AWD targets a niche market with its unique design.
The Cross Country model is part of Volvo's established model program.
It was conceived from the initial stages of development. In addition to being all-wheel drive, it features slightly increased ground clearance and protective garnishes on the body, clearly differentiating its character from the existing T4 and T5 R-DESIGN models.
During the development process, we commissioned a research firm to conduct styling clinics, presenting the car to potential target customers.
When we held one in Italy, showing both the standard model and the Cross Country and asking which they preferred, I was surprised by how clearly their preferences were divided. There was no hesitation. This suggests that offering two distinct models was a successful strategy for the V40.
What are your expectations for sales in Japan?
There was a time in the 1980s when Volvos sold well in the competitive Japanese market. Achieving competitiveness there also contributed to global success.
Today, Volvo boasts a strong lineup once again. With the V40, the establishment of three distinct variations on the same platform is expected to boost sales. We have much to be proud of, including its high-quality design, which has earned 17 awards in Europe, fuel-efficient engines, high safety standards including pedestrian airbags, and a comprehensive in-car infotainment system. We are optimistic about its success in Japan.
Hakan Abrahamsson
“C30,” andC70” program director. He is currently responsible for overseeing all C-segment cars at Volvo (the class that includesVW Golf) andAudi A3.






