It is not unusual for car companies to change their mind about pricing, but it is unusual when they change their mind and it results in lower prices than expected.
That is what Volvo Canada has done with its pricing for the upcoming S40 and V40 models. The Toronto-based firm had quashed earlier suggestions that this model would herald the return of the sub-$30 000 Volvo when it goes on sale in July, but here it comes with a sticker of $29 995. By the way, that is for the S40 sedan model. The V40 wagon will sticker at $30 995. These models also mark the return of the smaller Volvo, since they are more compact than anything we have seen here from Volvo in some time.
A cynic might suggest that lower-than-expected sales in the U.S. (where the car has been on sale in a slightly different format for some months) might have something to do with Volvo Canada's pricing strategy, but even a cynic would not complain about the end result for the consumer.
Whatever was the cars' reception, south of our border, Volvo Cars of Canada president Ken Brusca says they "represent terrific value and are expected to make a significant impact in the mid-market in Canada."
The general marketing strategy seems to involve bringing the famous Volvo reputation for quality to a whole new strata of buyers, while promising them a certain level of luxury and performance as well.
Brusca says, "The Volvo 40 series include industry-leading safety technologies, such as: Inflatable Curtain side impact protection, dual-stage front air bags and popular Volvo features like standard seat warmers and headlight wipers."