Volvo plans to double its marketing budget in the U.S. next year as the company looks to catch up with its German rivals in the luxury car game, its chief executive said Tuesday.
Stepping in two years ago to help the Swedish automaker recover, Håkan Samuelsson said a plan to help Volvo take more of the U.S. market will be laid out today at the Los Angeles Auto Show, the Wall Street Journal reported.
A new sports utility vehicle big enough for families and Volvo's reputation as a reliable brand should help the carmaker capture more of the U.S. auto market. The brand has seen 35 percent growth in sales in China, while sales in Europe are stabilizing.
Hinting that U.S. sales growth is crucial to Volvo's survival, Samuelsson said the carmaker is aiming to increase from 60,000 vehicles a year to 100,000. Volvo is hoping to steal market share from BMW, Daimler and Volkswagen, which have been dominating the luxury car world.
Volvo is launching the redesigned 2016 XC90 at the auto event in L.A. this week. The SUV that seats seven is indicative of Volvo's new design direction. Unveiled earlier this year in Sweden, the revamped XC90 has an all-new chassis, front and rear and replaces the iconic wagon as Volvo's largest offering.