Volvo to test new 4WD in UAE

Volvo's first XC90, its new four-wheel drive vehicle featuring basic GCC specifications, will roll out of the factory this week, confirmed a senior official with the Swedish carmaker.

The new vehicle will then be sent to this region for intensive testing across varying climatic and environmental conditions. Most of the tests will be carried out in the UAE and Saudi Arabia.

Based on these tests, the launch date for the XC90 will be finalised. As things stand now, this could most likely be by the early part of 2003, the official added.

"We expect to get another two or three units to be tested for these markets. The actual retail pricing will be decided only after the tests and other procedures are over," said Graham Carmichael, regional director for Volvo Car International.

The XC90 is expected to play a key role in Volvo's regional aspirations as the Middle East's four-wheel drive market has had growth rates far higher than for passenger cars for some years now.

Porsche is another leading auto manufacturer coming up with its first sports utility version. This year Volvo forecasts Gulf sales to hover at about 1,500 units compared to 1,200 in 2001. Saudi Arabia is the biggest market followed by the UAE.

In the first quarter this year, sales were up 40 per cent. Said Carmichael: "We are still playing catch up in these markets. The direct regional presence we have had in the last 18 months is proving beneficial.

"We are talking with every importer of ours to move on and improve features at their facilities. Our UAE partner, Trading Enterprises, has recognised that there is a future for the Volvo brand here and has been making heavy investments."

Trading Enterprises is to open its new Volvo showroom in Dubai within the next few weeks. In the coming months, Volvo will also be coming up with a strategy to improve sales among fleet operators in the region.

"In each market we have had some success so far. But there will be a more holistic approach from our side after a review of our fleet operations. We hope to come to the market with this latest by year end."