Report Predicts Demise of Volvo and Mitsubishi in the U.S.


  • 2014 Volvo S80 Picture

    2014 Volvo S80 Picture

    The 2014 Volvo S80 and the automaker's other offerings aren't enough to keep it off of death row, according to a new report. | May 28, 2013

Just the Facts:
  • Volvo and Mitsubishi are among the 10 brands sold in America that 24/7 Wall St. predicts will disappear before 2014.
  • "Brands with market shares under half a percent cannot compete with companies that either produce high-luxury models like Mercedes-Benz or multiline giants like General Motors," the report said.
  • Volvo Cars of North America had no official reaction to the report, a spokesman told Edmunds; Mitsubishi Motors North America did not respond immediately to request for comment on the report.

NEW YORK — Volvo and Mitsubishi are among the 10 brands sold in America that 24/7 Wall St. predicts will disappear before 2014.

"Brands with market shares under half a percent cannot compete with companies that either produce high-luxury models like Mercedes-Benz or multiline giants like General Motors," the report said.

Volvo Cars of North America had no official reaction to the report, a spokesman told Edmunds; Mitsubishi Motors North America did not respond immediately to a request for comment on the report.

The 2012 report by 24/7 Wall St. accurately predicted that Suzuki would leave the U.S. market.

"Mitsubishi and Volvo will follow soon," the report said.

The report is based on several factors, including declining sales and losses, rising costs that are unlikely to be recouped through higher prices and companies that are sold.

The report's authors said that Volvo's model line is "too small to allow it any chance." It also said that Mitsubishi is weakened by a small model lineup.

"Mitsubishi does not have the advantages of some other companies with low market shares," the report said. "It is not a luxury car company like Porsche and Land Rover, which sell high-end cars and command high prices."

Edmunds says: 24/7 Wall St. was incorrect in predicting last year that Avon and the Oakland Raiders were on their way out. Could it be wrong about Volvo and Mitsubishi?

Comments

  • stovt001_ stovt001_ Posts:

    Why is the "Just the Facts" section repeated verbatim in the first three paragraphs, and what are the other 8 brands since the article mentioned the reporting naming 10 brands?

  • kiiwii kiiwii Posts:

    couldn't be happier Volve get the F out of US. bought a brand new S80. the transmission crapped out after 2.5 yrs right under 30000 miles. Volvo installed a REFURBISHED unit and refused to replace with a brand new one.

  • fortstring fortstring Posts:

    Don't think the "report" is accurate for Volvo. Volvo's buyers are among the wealthiest/most fiscally sound. They're starting to listen to their core buyers by releasing the V60. It's true though that Volvo needs to introduce more models. The only compelling offering as of now is the S60/V60. I wouldn't say that they would bow out of the United States, though; that seems a bit of a stretch to claim.

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