But will these new additions be?
Aside from being hit by US tariffs, Volvo has a lot to be happy about in 2019. Volvo's sales have been increasing rapidly and the European automaker looks to be in a strong position for the future. So strong, in fact, it may introduce new models to its lineup according to Auto Express. Volvo currently makes the S60, V60 (and CrossCountry), S90, V90 (and CrossCountry), XC40, XC60, and XC90 and produces two models, the Polestar 1 and 2, under its new Polestar performance brand.
CEO Hakan Samuelsson is clearly warry of recent tariff threats citing "increased pressure on margins in declining markets." Volvo is working on streamlining production to increase profitability in the second half of 2019 but Samuelsson admitted there might be room for two new models in the company's portfolio.
"Our strategy has been growth but not through adding pure volumes. We have been going in hard and being better in segments where we have really strong offerings. That is the basic assumption. And now we also have the production capacity to grow this company, even a bit beyond 800,000-unit figure that we always talked about as a first ambition." Samuelsson explained.
"But we are not excluding the idea of additions, especially in very core segments like the SUV. I think we are looking into this possibility now. You should not exclude the idea that there might be a bigger one, but maybe also a smaller one. We will surprise you about that in the future," he added.
A flagship above the XC90 would make sense to compete with the new BMW X7 and Mercedes GLS. A new SUV under the XC40, on the other hand, would be uncharted territory for a luxury brand. "We took one step down with XC40, which is our smallest SUV. We have a very strong line-up of SUVs. So never say never," Samuelsson said. "There is a trend now that premiumness is more and more decoupled from size. Small cars can also be premium. Just because you have a small suit, it doesn't have to be polyester. So let's see."