Brand dilution - XC40

[soupytwister]

Looking at this page around the forthcoming XC40 https://www.xc40forums.co.uk/viewtop...78c8eda1974bd0

Clearly is cloning all the SPA platform tech pioneered in the XC90 into the lower models. Nothing wrong with that. Sensible. However it does being to devalue the luxury/expensive end of the market. You want your top brands to have class leading tech. You don't want your Ford Fiesta to have the same tech as your Ford Granada do you?

Be interesting to see how long before we see SPA v2.0 in the XC90. Or is SPA v1.0 going to be the path for a long time?

I guess the XC90 is now 3 years old since production began. Will they leave it 12 years like the Mk1 XC90 before they make a significant upgrade

[ulstrup]

first, the XC40 is not based on the SPA platform but on the CMA.
read this:
http://www.engineering.com/PLMERP/Ar...velopment.aspx.

One might understand from the above article that both SPA and CMA platform are designed with upgrade in mind like, say, a computer software. so, it's easy to believe that we will see timely evolution on the platforms technology with the basis concept remaining the same.

regarding the external/interior design it seems quite obvious that Volvo wants to create a new brand identity.I'm not shocked that obvious similarity in design are used for the XC sub brand.
Land rover is doing the same with the RANGE ROVER sub brand with the RR/RRS/evoque/velar.

[nu11eaf]

Will people want to pay a premium price for something that is no longer exclusive, I think the price of the XC90 will have to drop now.

[njpollard]

Originally Posted by nu11eaf

Will people want to pay a premium price for something that is no longer exclusive, I think the price of the XC90 will have to drop now.

I think the price of the XC90 is determined mainly by its competitors in the 'luxury' 7 seater segment, which are the Discovery and Audi Q7, and it's already cheaper than both of those.

[soupytwister]

Originally Posted by ulstrup

first, the XC40 is not based on the SPA platform but on the CMA.
.

Yeah - realise that. I was referring to the SPA tech in terms of Sensus, driving aids, general look and feel, etc. SPA/CMA is more chassis & engine related stuff.

Appreciate that's how the car market is these days in terms of re-use of components - in theory it keeps the prices low.

[Jimrod]

Originally Posted by soupytwister

Yeah - realise that. I was referring to the SPA tech in terms of Sensus, driving aids, general look and feel, etc. SPA/CMA is more chassis & engine related stuff.

Appreciate that's how the car market is these days in terms of re-use of components - in theory it keeps the prices low.

I think the new London Taxi's are a larger concern on that front.

This looks like a decent competitor for Qashqai/Tiguan/Karoq etc, will be a very good model for Volvo to have.

[uro1]

I think VOLVO looks a bit different on that. They see the XC40 as an equal luxury car then the XC90 and XC60 series - just smaller not lesser. And I am sure they´ll position the price accordingly. Just look at the XC60. The price difference to the 90 series is rather small compared to what it was in the older models.

[andyfromembsay]

Originally Posted by uro1

I think VOLVO looks a bit different on that. They see the XC40 as an equal luxury car then the XC90 and XC60 series - just smaller not lesser. And I am sure they´ll position the price accordingly. Just look at the XC60. The price difference to the 90 series is rather small compared to what it was in the older models.

As, I'd suggest, do Audi, BMW, Merc etc in their smaller cars.

[soupytwister]

Originally Posted by uro1

I think VOLVO looks a bit different on that. They see the XC40 as an equal luxury car then the XC90 and XC60 series - just smaller not lesser. And I am sure they´ll position the price accordingly. Just look at the XC60. The price difference to the 90 series is rather small compared to what it was in the older models.

The price difference of the new XC90 versus the old XC90 also had a similar hike like that seen in the new v old XC60. Hence why you now have the small difference between new XC60 and XC90. They've shifted both significantly up a price level.

You could get the Mk1 XC90 for about £28k i think in 2013. The new XC90 launched in 2014/5 with a price tag of £46k. A significant shift upmarket as the XC60 has been. To be fair to the Mk1 XC90, it was a 10 year old design by that point and they wouldn't have shifted many if had been priced against Q7 etc.

I'm sure back in 2013, the XC60 was probably £20-25k so in relative terms, were not far apart from XC90 prices. The XC60 of the day was probably more desirable due to newer technology etc.

[nu11eaf]

[QUOTE=soupytwister;2319703

I'm sure back in 2013, the XC60 was probably £20-25k so in relative terms, were not far apart from XC90 prices. The XC60 of the day was probably more desirable due to newer technology etc.[/QUOTE]

But lacked the practicality and versatility of the XC90.