Volvo XC40

The Volvo XC40 is Volvo's third SUV model, slotting in at the smallest end of Volvo's SUV lineup. It completes the Small/Medium/Large choice for SUV buyers.

The Volvo XC40 is Volvo’s third SUV model, following the XC90 gen 1 in 2003, and the XC60 gen 1 in 2009. We reported on the debut of the XC40 here, at which time photos of it were scarce. (Now we have plenty of very hi-resolution photos for those who like to zoom way in. See below.)

 

Littlest Member of the (Now-Complete) SUV Family

The XC40 now joins its all-new 2nd generation big sister SUV Volvos, the new-ish XC90 and new XC60. At last, Volvo has a full lineup of SUVs to choose from, Small/Medium/Large, to fend off competition from other automakers who have long had SUV lineups of 3 or more models, generally following the S-M-L arrangement.

Mercedes-Benz, for instance, has seven:

SUV’s (sport utility vehicles) of this small size are often called CUVs (compact utility vehicles), and this one is built on Volvo’s new small car foundation called Compact Modular Architecture (CMA).
That sums up the size of this model and the empty space it slots into in Volvo’s car menu, but here’s something more interesting, by far: it’s available through Care by Volvo.

Volvos Subscription Service Then Now

Care by Volvo = Subscription

Volvo’s subscription service, which we’ve mentioned here in these hallowed MVS pages on occasion, is a bundle (no pun intended) of normal items associated with a car. In Volvo’s case, this means for one flat monthly price you get

  • a New Volvo
  • insurance
  • maintenance
  • service
“Subscribe online. No negotiation. No down payment”… pretty simple, very modern. You’re on the hook for
  • the $600/month (more if you get options)
  • local taxes
  • state registration fees
  • gasoline
Volvo may accused of several things, but being stodgy or slow-moving are not one of them. TechCrunch calls this subscription service an “ownership alternative.” I’d say that’s an apt, but possibly understated term for this.
The automotive subscription model is the biggest change how we pay for cars since financing.

They’re Building Them as I Type

At the time of this writing, the XC40 recently went into production in Belgium.

Volvo XC40 Pricing

  • $34,195 for the front-wheel-drive T4 Momentum, available later in 2018
  • $36,195 for the all-wheel-drive T5 Momentum, at U.S. dealers early 2018
  • R-Design trim adds $2500 to either model

Volvo’s not giving them away, but mid $30k is competitive in this market. Volvo’s margins on this model are likely fairly high because they’re not operating at the bottom of the CUV market, where discounts to combat competition carve into margins. Margins always increase as the luxury level of vehicles goes up. But volume decreases on this slider. The trick is to find the Happy Medium, where margins are good and volume is good.

Share This
Author: Matt
Date: November 29, 2017

Subscribe to the MVS Newsletter


All MVS email complies with the CAN-SPAM Act. You can unsubscribe here from the MVS Newsletter at any time.