Volvo Unveils 2008 XC70 at Geneva Motor Show - VIDEO ENHANCED

The all-new Volvo XC70 - ongoing capable success in a refined package

• Ongoing "crossover" success
• More luxury and added capability
• Target 40,000 cars per year U.S. the largest market
• Sales start in August 2007

GOTHENBURG - March 6, 2007: When the first XC model from Volvo Cars took to the roads in 1996, it was not only an immediate sales success; it also carved out an entirely new Cross Country segment. Now the third generation of the Volvo XC70 steps into the spotlight at the Geneva Motor Show. With its original recipe intact - but now with added luxury and in an even more capable package than ever.

At its debut just over ten years ago, Volvo Cars expected XC sales of 15,000 cars. That became 17,500 when American buyers, above all, discovered that they could have everything that an SUV could do, but in a true premium car with a distinct Volvo feel. The term "crossover" was born.

The Volvo XC70 has retained its power of attraction ever since and the current generation reached sales of around 40,000 in its best year. "We had a winning concept from the very outset and we have refined it continuously. The all-new XC70 maintains its tough, capable attitude while at the same time growing more comfortable. What is more, our design team has given the car a more elegant, more luxurious look," says Volvo Cars President and CEO Fredrik Arp.

Perfect for an active lifestyle
The all-new Volvo XC70 is equally at home outside that favourite downtown bistro or the opera house as it is on rough forest tracks, out in the wilderness or halfway up a mountain.

With an elevated feel in the comfortable, luxurious interior, the estate car's functional versatility and the XC model's All Wheel Drive and capacity, the all-new XC70 is the perfect tool for thrilling activities.

Many lifestyle cars are largely about perception and image. However, a large proportion of today's and tomorrow's XC70 owners choose their car because they intend to fully exploit its capabilities. "The XC70 has primarily been created to get you to the end of the road. But it has also shown its ability to take you further if you want to and dare to. A couple of years ago, we organised a test-drive in Mexico on Baja California's worst roads, as close to off-road as you could get. Even the most hardened adventurers were impressed by what the XC70 could handle," recalls Fredrik Arp.

The all-new XC70 flexes its muscles still further. The model is available with a six-cylinder petrol or five-cylinder turbodiesel engine. In the new model, the electronically controlled all wheel drive from Haldex of Sweden can be supplemented with the Four-C active chassis with three driving settings. Features such as Hill Descent Control and ventilated seats also contribute to a comfortable driving experience.

Safety is naturally at the highest level and the car also includes Volvo's world breakthrough: integrated child booster cushions with a choice of two seating heights. "The all-new Volvo XC70 has been developed for people who want to live out their dreams," says Lex Kerssemakers, Senior Vice President Brand, Business and Product Strategy at Volvo Cars. "It has the right attitude, capacity and equipment for enjoyable trips to and from your adventures. And just like the all-new V70 model, it clearly marks Volvo's increasingly strong position in the premium segment. It is therefore logical that the all-new Volvo XC70 should inherit much of the same character and properties. We recognize the design, the comfort and the high safety level. The fact that the all-new Volvo XC70 is now even more versatile and capable than its predecessor is a direct response to our customers' expressed wishes and needs."

An American love affair
The XC70 will continue to be mainly a North American love affair. Almost half of the total annual volume of about 40,000 cars will be shipped over to North America, where the USA is naturally the largest single market.

However, the crossover model is also on the upswing in Europe, which will account for about 40 percent of total sales. Here it is Sweden that is the largest single market, followed by the United Kingdom and Germany.

The all-new XC70 will be unveiled together with the all-new V70 at the Geneva Motor Show in early March. Sales will get under way at the end of August, starting in Scandinavia. Other markets will follow gradually during the rest of 2007.

Introduced in China too
Volvo is also planning to introduce the all-new XC70 in China, which is quickly expected to reach third place in the model's sales statistics. "There is a considerable appetite for cars with pronounced attitude on the fast-growing Chinese market. The Volvo XC90 is already very popular and we are convinced the all-new XC70 will play a significant role in our plans for continued fast sales growth in China," says Fredrik Arp, and adds: "Our successful XC range will soon be expanded with the new XC60. With three exciting XC models, we will cover even more of the growing number of car buyers who want the very best of two worlds - capable muscles and luxurious, comfortable passenger-car comfort. And it all began with the XC70, which has now become even more attractive than before."