Volvo

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Marketing Management
1st semester 2011

The report has been prepared by group 4 – 1MFE:

Dominika Dojčáková
Hristina Prosenikova
Sofiya Molchanova
Veronika Novikova
Khuong Nguyen Dang
Gabriel Oprendek
Simeon Naydenov

Preface

This project is addressed to the people who have an interest in the future of the car industry, and more specifically the future of Volvo in the North American Market.

After reading our project the reader will find himself / herself more knowledgeable about the challenges many car-manufactures face in the near future. The reader will have a better understanding of how Volvo has a plan to overcome these challenges.

We would like to thank Volvo for giving us the chance to visit their headquarter in Gothenburg, and giving us a better understanding of how Volvo function as a company in the global market. Much valuable information was given to us during our tour at the Volvo factory, and we have taken some of this information into consideration, and used in our project.

Table of Contents:
Content
1. Introduction3
1.1 Background3
1.2 Rules on CO2 and Emission Regulation3
1.3 North America4
1.4 Hybrid car5
2. Problem Statement6
3. Delimitation6
4. Methodology7
4.1 Economy7
4.2 The image of Volvo in USA8
4.3 The hybrid-car market in USA8
4.4 Advertisement9
4.5 Marketing Strategy10

1. Introduction
1.1 Background

As everybody knows Volvo is a big company known with its mass production of unique, powerful and smart cars. The brand “Volvo” was born on April 14th in 1927.The first car called “Jakob” had left the factory in Gothenburg, Sweden. The whole company was formed on foundation of safety and quality, a concept that still works for the Volvo cars today. The main focus for Volvo is safety. “Cars are driven by people. The guiding principle behind everything we make at Volvo, therefore, is and must remain safety”- Assar Gabrielsson and Gustav Larson. Even though Volvo Car Corporation is owned by the Geely Automobile, the safety systems of Volvo are still made standard on all of their vehicles. All of Volvo safety innovations are patented. Volvo even has its own Cars Safety Center, the most advanced automotive center in the world. Almost 15 million Volvo cars have been produced and of course millions of trucks, buses, marine, aero and industrial engines, construction equipment and so on. Of all the cars manufactured to date, some 8 million are still rolling today. The logo (the circle with the arrow) symbolize the strength of the iron which completely response to the strength and stability of their cars. The company grows fast and straight up and besides its big competitor – Honda, it is still on the top whit its new models of cars of the future which will soon burst the market.

1.2 Rules on CO2 and Emission Regulation

From 1st of January the new law was established. According to the new law, all new cars, sold in EU,should not produce more than 120g СO2 per kilometer. For the 2020 the standard will be more strict than ever- 80g CO2 per kilometer. This law captures restrictions for diesel and petrol cars. Cars account for around 20% of total European emissions of carbon dioxide (CO2) – the principal greenhouse gas responsible for global warming.That’s why it is time to think about environmental-friendly cars. Volvos new models called DRIVe are based on the efficiency. The measures adopted to reduce CO2 emissions will be in production before the end of the year in the C30, S40 and the V50 models. Volvo is thinking about its customers. Reducing fuel consumption and dropping below the 120 g/km CO2 emission level offers a range of benefits, both for the environment and the buyer's economy. With lower carbon dioxide (CO2) emissions, these cars reduce the net contribution to global warming. With the cars' good environmental performance, the driver can count on various financial incentives in the form of subsidies in the 13 European...
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