Volvo ends C30 production

What I figured would happen for a while was official announced today.

The last C30 orders have been placed and all production will cease by December.

So if you really want that custom C30 you better tell someone now, all five of you anyway, we can only amend ordered cars for another couple of weeks.

I have a hard copy of the bulletin in front of me but no PDF to print as my password is acting up for VRC2(Volvo’s internal dealers site)

Here is what the bulletin says.

After 6 successful model years, and sales of over 26,000 units in North America, the C30 will end production in December 2012. The C30 successfully achieved its goal to attract new customers to the Volvo brand, pulling a high percentage of customers from brands like Mini, Mazda and Volkswagen. (They cite a strategic vision study from 2008 and in my experience you did get people from those brands who would not have previously considered a Volvo to at least look at a C30)

This is a necessary step under our new business strategy and as part of our ongoing efforts to transition both financial and human resources to the development of high volume products to better sustain our brand health and network viability moving forward.

The last of the C30 production orders have been placed with the factory, the ability to modify these orders will start to close over the next several weeks. Please contact your Market Manager for any questions about this final production allocation including information about the C30 Polestar Limited edition previously communicated under separate cover.

Translation.

The C30s are not profitable because we cannot build them cheap enough to sell in the volumes necessary to continue production.

They were barely selling 4,000 units a year in the North America and without the S40/V50 to spread out costs for North American distribution the C30 made no sense anymore.

The C30 could have been a good niche product for Volvo but it was marketed all wrong and priced badly. The pricing problem was partially explained by content, there needed to be a lower horsepower version of the C30, and partially by geography, Sweden is an expensive place to build cars.

There was never going to be a $16,000 C30 built in Sweden under any circumstances but they could have marketed a sub $20,000 car to build volume and help spread cost. Build a C30 with no turbo and a five speed manual instead of a Six speed for starters. Instead we only ever got the 227 hp T5 model here that was too expensive and got relatively poor gas mileage for its class.

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One Response to Volvo ends C30 production

  1. Pingback: Speedborne.com » Confirmed: Volvo takes final orders for C30, production ends this December

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