Volvo rules out S-class rival

Volvo has no plans to build a rival for the Mercedes S-class, according to its boss Stefan Jacoby.

“It’s too early for us to enter that segment,” he said, “so it’s not in our mid or long-term plans. We won’t build anything larger than the [China-only] S80 L.”

Volvo's show car at last week's Shanghai motor show, Concept Universe, had been tipped to show a large new saloon, but instead it showcased a potential future Volvo design direction.

See pics of the Volvo Concept Universe

The big saloon was one of the most hotly debated cars at the show, thanks to controversial front-end styling that includes a major nod to classic Volvos, like the PV544. Design chief Peter Horbury admitted, “We’ll be discreetly asking people nearby during the show: ‘Do you think this could be a Volvo?’ We’ve been deliberately brave here.”

Volvo released few technical details about the show car, but it’s understood to be built according to the firm’s forthcoming Scalable Platform Architecture (SPA). Designed to support future models from the S40 right up to the Chinese-market S80 L, the new set-up is scheduled to be introduced at the Frankfurt show this coming autumn.

Jacoby also said Volvo is better off being wholly owned by Geely, instead of being part of a joint venture, such as those employed by many other European brands in China.

“There will always be different interests there,” he says. “We are in the same boat but we are also rowing in the same direction. As the Chinese partners expand, there could be problems for some of those OEMs in joint ventures.”

Volvo S60 gets 321bhp

Volvo announced at the New York motor show that its 2012 R-design Volvo S60 and XC60 versions will feature more power than the outgoing version when they go on sale at the end of summer in America.

The revised turbocharged T6 petrol engine for both models produces 321bhp and 354lb ft of torque – up by 21bhp and 29lb ft – with maximum torque delivered from 3000 revs.

See pics of the 2012 Volvo R-design S60 and XC60

Power is driven through all four wheels via the firm’s second-gen six-speed automatic gearbox, which has also been fettled with for less friction and smoother changes.

Other upgrades for the new hardcore 2012 versions include changes to the chassis, strut brace under the bonnet and ‘monotube’ dampers for the S60 R-Design, which replace the previous version’s twin-tube dampers. Suspension is also lowered for a more aggressive stance.

Volvo's North America chief Doug Speck said: “The jump in performance will re-define these two R-Design models. Along with styling and suspension features that set them apart from other versions, our two newest R-Design models will have a higher 'fun-to-drive' quotient. I see that as a positive thing, and so will car buyers.”

Prices for the revised R-design Volvo S60 start from $42,275 (£25,720), with the XC60 starting from $43,150 (26,250). No word has been given yet by Volvo of the more powerful engine's arrival to the UK market.