Volvo delays S60, XC90 redesigns

Volvo has postponed its pending redesigns for its S60 midsize premium sedan and XC90 SUV. The S60's redesign has been pushed back another year to 2010 and the XC90 will receive a late-cycle face lift for 2010 and a full redesign two or three years later, pushing it back at least two years in what was believed to be its original cycle.

Volvo blames tightened budgets and a desire to move into different market segments - with vehicles like the C30 hatchback - for the delays.

"I would love to have S60 by early 2009, but it has to be a little later. We had to defend the XC60 range. And there is all the money we put into CO2. In the long term, it's the right thing to do," Lex Kerssemakers, Volvo's senior vice president of brand, business and product strategy, told Automotive News.

The S60 has been on the market since the 2000 model year and has only received one minor facelift. The XC90 has been for sale since the 2003 model year and has also been subject to a facelift.

Kerssemakers wasn't about to blame parent company Ford for the budget cuts, however.

"We have full support from Ford. They have to sign off our very big projects, and recently signed off another big project," Kerssemakers said. No specifics on that new project were brought to light.

Kerssemakers also said that Volvo is reconsidering killing off the S40 sedan, which hasn't met the sales figures the automaker was hoping to achieve.