Targeting Generation V(olvo)

Volvo fans, listen up. In coming months, the automaker plans to launch four new vehicles in the U.S. market.

Two will be brand new models for the young and hip. The sporty C30 hatchback arrives in October and a small sport utility vehicle called the XC60 reaches showrooms in early 2009.

Two others will be completely overhauled versions of models already on the market. The all-new XC70 rolls out in November, followed by the all-new V70 wagon in February.

The C30 and XC60 are aimed at the youngest Volvo customer ever, and one who lives in an urban environment, says James Hope, Product Communications Manager for Volvo. Both vehicles are more nimble and designed to fit into smaller spaces than any Volvo before them.

The C30 is meant to compete with the likes of the Audi A3, Mini Cooper and Volkswagen GTI. With a base MSRP of $22,700, it will be the least expensive Volvo available.

Despite being nine inches shorter and more than 300 pounds lighter than Volvo’s current smallest car — the S40 — the C30 achieves identical fuel economy. The EPA rates both cars at 19 mpg city/28 mpg highway when equipped with a manual transmission and front-wheel drive; models equipped with the automatic transmissions get 27 mpg on the highway.

In Pictures: Four New Models on the Way from Volvo

The XC60 — which is smaller than the XC90 SUV, a current Volvo model — is based on the concept car of the same name that was shown at the North American International Auto Show in Detroit in January. (Read about the concept car here.)

Volvo hasn’t released powertrain information for the XC60 just yet, but spokesman Dan Johnston said there was a possibility that specifics would be announced at the Detroit auto show in January or at the New York auto show in March.

The concept version of the XC60 featured a 3.2-liter, six-cylinder engine that was borrowed from the S80 sedan and XC90 SUV, and optimized for ethanol-based E85 fuel. The XC60 will also receive Volvo’s new City Safety braking system, which is meant to prevent rear-end collisions. The system automatically applies the brakes if the driver approaches another vehicle too rapidly, using radar to sense the impending collision. (Read about this and other high-tech safety features here.)

Analysts said Volvo is trying to extend the appeal it already has with parents to their children by introducing the youth-oriented C30 and XC60. “This is just another part of an overall larger strategy to expand into segments where Volvo doesn’t yet exist,” said Tina Jantzi, Manager of North American Forecasting for J.D. Power and Associates. “The C30 is going to grab younger buyers, perhaps those whose parents are buying them the car and who will be most concerned with safety.”

Safety has long been a Volvo hallmark, and although it’s often been what draws consumers to the brand, it may become more and more difficult for the automaker to differentiate itself based on that alone, Jantzi said. “Their reputation for safety helps them. They should continue to play up their strength as a company that produces safe vehicles. It will continue to buoy sales,” she said. “But to an extent, they lose a little something with more and more manufacturers adding safety features like side airbags and traction control as standard items.”

Although Hope says that the C30 and XC60 were created out of consumer demand for smaller cars and SUVs, Jantzi said that is not the only reason Volvo is introducing them. “It’s sort of a chicken-and-egg type of thing,” she said. “We’ve been seeing that between quality issues and consumer perceptions, Volvo hasn’t been reaching what their target is.”

According to data provided by Bandon, Ore.-based CNW Marketing Research, Volvo’s August sales were down 9.4 percent from the same period a year earlier. “So they’re trying to expand their portfolio to increase sales,” Jantzi said.

These four vehicles are big news for Volvo, but Jantzi said she doesn’t expect sales to suddenly take off with their introduction.

“This is a good way to maintain themselves and not slip any lower in sales, but it won’t necessarily increase sales by leaps and bounds,” she said. “It could bring in sales of about an additional 25,000 to 30,000 vehicles annually in 2008. But the C30 may take off better than expected depending on how they market it and what price point they choose.”

In Pictures: Four New Models on the Way from Volvo

Volvo is continuing to market its traditional cars as well, with the fresh XC70 and V70 that both debuted at the Geneva Auto Show in March. (Read coverage of the debuts here.) The XC70, basically a toughed-up version of the V70 wagon with SUV-like styling cues along with added technology and ground clearance for off-road driving, is one of Volvo’s biggest sellers. The vehicle is all-new for 2008 — it and the V70 are based on the S80 sedan that came out last year.

Volvo will be an interesting company to watch over the coming year, to see how it markets these new vehicles and whether its sales improve, Jantzi said.

“Whether Ford ends up selling Volvo may play into things,” she said. “Within a year, we may see more defined strategies coming from the company.”