Volvo Enhances Warranty Coverage on ’09 Models

Seeking to provide extra value to buyers rather than increase incentives or offer more subvented leasing programs, Volvo Cars of North America LLC rolls out its “Safe and Sound” plan for ’09 models.

Safe and Sound provides 5-year/60,000-mile (97,000-km) warranty coverage, up from four years and 50,000 miles (80,000 km).

Included in the program is complementary factory scheduled maintenance and unlimited-mileage roadside assistance. The package also adds brake and rotor coverage and windshield-wiper replacement.

The safe and sound plan starts today and covers all ’09 models sold through June 30. It is transferrable to a second owner.

“This is best-in-class coverage,” says Tassos Panas, executive vice president-sales operations for VCNA. “Today, consumers are looking for value and Volvo has built an overall coverage program that adds value and peace of mind to their ownership experience.”

The program is being launched to help move inventory during the summer sell-down phase for ’09 models. “Lease sales and deep discounting doesn't move the needle on this,” says John Maloney, vice president-marketing and product planning.

In focus groups, about 30% of consumers said they valued the program between $2,500 and $5,000, and another 37% felt it was worth more than $5,000, Maloney says.

Dealers were so enthusiastic about the program, he adds, VCNA also is offering a special $2,995 option package available to buyers of a ’10 XC60. That will be extended to two other ’10 models beginning next month.

Maloney predicts May will be the best retail month of the year for VCNA and that the XC60 will surpass sales of the XC90 for the first time.

The uncertainty about Volvo's future ownership has not adversely impacted sales this year, he says, noting most customers are not even aware the brand is owned by Ford Motor Co.