May 30, 2004

Volvo Slightly More Popular in France

By Kevin

In France, the registration of Volvo automobiles increased 33% in 2004Q1 over the previous year, even as total sales dropped 2.8%. Granted, only 2,735 of 506,884 new registrations were for Volvos--a 0.5% market share! 87.3% of Volvos sold were diesel powered. The thread attached to the above article informs me that in France, diesel costs far less than regular gasoline due to inequitable taxation.

Posted at May 30, 2004 09:13 AM

Comments

That's nothing new. In India as well diesel is subsidised while petrol (gasoline) is taxed.

The reason was that most trucks use diesel and they perform a service by transporting essential goods and services. While cars are a luxury good and owners of cars can afford to pay more.

The unintended consequence? Nearly every car manufacturer has a diesel model.

Comment by Yazad at May 31, 2004 10:23 AM | Permalink

That's interesting. In Sweden Volvo's market share are around 20%, so there are a rather large amounts of Volvos on the roads (I drive one myself). But the thing is that I don't know anyone who has a diesel-driven Volvo, I asked my father and he came up with three persons who he knew had owned one, and two of them are taxi-drivers. In Sweden diesel are less taxed than regular, unleaded, fuel. I would say the difference are about 20-25%. But at the same time, the owners of a diesel-driven car pays a lot more when it comes to vehicle tax. For instance, I pay 1777 SEK per year (about 234 USD) in vehicle tax for my car, a Volvo V70. If it were a diesel I would have to pay almost 4 times that amount, 6797 SEK (894 USD).

Comment by Dennis at May 31, 2004 12:52 PM | Permalink

My wife drives a Volvo V40. (If you remember, I drive the Hyundai--such is marriage). The diesel model--which gets extraordinary fuel efficiency on a very small engine--is not available for purchase in the United States except as a direct ship from the plant or from a foreign dealer.

Volvo also have cars that run on natural gas.

VOLVO'S BI-FUEL ENGINE RUNS ON GAS, UTILISING PETROL AS A RESERVE FUEL. THE 2.4-LITRE FIVE-CYLINDER BI-FUEL ENGINE FOR THE VOLVO S80, S60 AND V70 IS AVAILABLE IN TWO VARIANTS: ONE POWERED BY METHANE (NATURAL GAS - CNG OR BIOGAS) AND ONE THAT RUNS ON LIQUEFIED PETROLEUM GAS (LPG). A FOUR-CYLINDER 1.8-LITRE BI-FUEL ENGINE RUNNING ON LPG IS AVAILABLE FOR THE VOLVO S40 AND V40.

Comment by Kevin Brancato at May 31, 2004 01:30 PM | Permalink

Re "... except as direct ship from the plant or a foreign dealer..."

Is it actually even possible to buy a foreign-spec ("foreign" here implicitly excludes Canadian) car from a foreign dealer and get your local DMV to register it for use in the US? Aren't there emissions laws that would prevent that or something?

If not... boy, that would be way cool. Alfa Romeo, here I come.

(Note that you wouldn't necessarily have to pay the probably-prohibitive costs to arrange trans-Atlantic shipping for a single car; there are European colonial dependencies in the Caribbean where Euro-spec cars are sold-- St. Martin, for example-- and you could get it shipped to Miami from one of those places).

Comment by Nicholas Weininger at June 2, 2004 09:51 AM | Permalink

I think you have to have an import specialist look at the car first, and make necessary mods. That's how one company is already starting to import SMART cars into the US.

Comment by Kevin Brancato at June 2, 2004 12:16 PM | Permalink

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