Ai Phing Teh, regional business manager of Volvo Cars Asia Pacific (VCAP), was recently in town to conduct an annual business review of the Philippine operations of Volvo Philippines under the management of Viking Cars Inc. (VCI). The BusinessMirror took this opportunity to learn more about Volvo’s business in the country and in the region by interviewing Teh, who oversees sales and marketing for five Volvo importer markets: Singapore, Hong Kong, the Philippines, Indonesia and Brunei.
Marie Loi de Guzman, assistant vice president of VCI, and Paolo San Mateo, service manager of VCI, also provided some insights on the Swedish car manufacturer’s past, present and future.
Does Volvo keep an eye on the Chinese and Korean automakers? If so, what has Volvo learned from them?
Ai Phing Teh (AT): The designers do keep track of the latest model launch in the markets, however, the main philosophy behind our design is still driven by modern Scandinavian luxury cars that understand people.
What makes the Filipino Volvo customer different from other Volvo customers in the region?
Loi de Guzman (LG): Every Volvo customer is unique and we aim to always please them individually based on their specific needs and wants. What unites them, though, is their desire for a premium car. That’s why they are attracted to the Volvo beliefs and values. Volvo customers recognize that at Volvo, they are getting not just a machine but a promise—the promise our founders made that everything we do at Volvo is, and must remain, safety. We believe that if you feel safe, you can have more fun.
What is the biggest challenge for Volvo as it strives to increase its market share?
Paolo San Mateo (PM): Price disadvantage due to JPEPA (Japan-Philippines Economic Partnership Agreement), presence of more and more European brands in the market, and improved image, quality and value of Japanese and Korean makes.
How come there is no rear-wheel-drive model in the Volvo lineup?
AT: All our new models are front-wheel drive and one of the main reasons is commission for safety and, secondly, it is related to packaging of the car. All our cars have a transverse engine layout and this enables us to have a bigger cabin space to cater to better comfort in the car.
PM: The last production rear-wheel-drive Volvos were the 1998 S90 and V90. For ice and snow, front-wheel drive works better and provides more traction compared to rear-wheel drive due to more weight on driving wheels. Reduced weight is another advantage. Lowering a vehicle’s weight improves acceleration, braking and fuel economy.
A big advantage of front-wheel drive is interior space. No large bumps in the floorpan are required to accommodate mechanical parts. With no rear differential, trunk space can also be increased.
Obviously, all-wheel drive works best in inclement weather hence Volvo SUVs are available with all-wheel drive.
What major changes to the Volvo manufacturing process did the new five-year vehicle warranty entail?
PM: There are no changes. Volvos are already built very well.
LG: The five-year warranty program is Volvo Philippines’ way of rewarding our clients for making the intelligent choice. We are confident in our products and as such, we know that with this assurance, we boost our customer’s faith and confidence in the car they drive and the brand that only has their best interests in mind.
We’ve driven the XC90 and we like it a lot but it is getting long in the tooth. When will the new-generation XC90 hit Philippine roads?
LG: We are expecting a significant facelift for the XC90 and the market can expect it around the first half of 2012.
Which low-emissions or zero-emissions technology will most likely power Volvos within the next decade or so?
AT: It will be the electric cars. We currently have the C30 electric. It has a top speed of 130 kph, torque of 220 Nm, acceleration of zero to 70 kph in six seconds, and zero to 100 kph in 10.9 seconds, and practical drive range of up to 150 km.
How does Volvo strike a balance between environmental concerns and customers’ desire for more horsepower?
AT: Volvo has a range of engines, from the lowest fuel consumption with our latest T4 engines, which is in line with our environmental values, and for customers who are looking for more powerful engines, they can opt for the T6 engines.
PM: By building cars that produce more power while consuming less fuel. Volvo is already testing a Kinetic Energy Recovery System (KERS) for its production cars. This is Formula 1 technology that Volvo wants to make public.
Fitted to the rear axle of a car in Volvo’s case, KERS grabs braking energy that causes the flywheel to rotate as fast as 60,000 rpm during extremely hard braking. From there, it uses a transmission module to transfer power back to the rear wheels to help propel the vehicle—all without using other significant sources of energy.
